On June 10 Arcadian Company purchased $6,000 of merchandise from Duvall Company, terms 2/10, n/30. Arcadian pays the freight costs of $300 on June 11. Damaged goods totaling $300 are returned to Duvall for credit on June 12. On June 19 Arcadian Company pays Duvall Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Instructions

(a) Prepare separate entries for each transaction on the books of Arcadian Company.

(b) Prepare separate entries for each transaction for Duvall Company. The merchandise purchased by Arcadian on June 10 cost Duvall $3,000, and the goods returned cost Duvall $150.