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11 12 04 The following transactions were recorded by an inexperienced bookkeeper during the months of June and July for Wildhorse Company. Wildhorse Company uses

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11 12 04 The following transactions were recorded by an inexperienced bookkeeper during the months of June and July for Wildhorse Company. Wildhorse Company uses a perpetual inventory system. A purchase of $4,300 of merchandise from Dan Dan Distributors was debited to Purchases and credited to Cash. The June 10 terms of the purchase were 2/10, 1/30, FOB shipping point. The invoice for freight in the amount of $215 for the delivery of merchandise purchased from DanDan was paid and was debited to Delivery Expense. Damaged goods totalling $100 were returned to DanDan Distributors for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. A payment was made to DanDan Distributors for $4,300. The payment was a debit to Purchases and a credit to Cash. July 15 Wildhorse sold goods for $9.265: Sales was credited and Cost of Goods Sold was debited for this amount. The cost of the inventory sold was $4,200. The terms of the sale were 1/15,1/30, FOB destination. Freight charges on the above transaction were debited to Accounts Receivable and credited to Cash for $185. The bookkeeper believed the customer had to pay for the freight charges. Wildhorse's manager gave the customer from July 15 a $300 allowance. The entry made to record the allowance was a debit to Sales and a credit to Sales Returns and Allowances. Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for the transaction 20 15 17 June 10 11 12 July 15 15 17 If you disagreed with any of the accounting entries above, prepare the correct entries. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually If no entry is required, select "No Entry for the account titles and entero for the amounts. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit (To record purchase on account.) (To record cash payment for freight costs.) To record purchase return.) (To record payment on account.) (To record sales on account.) (To record cost of goods sold.) (Cash payment for freight costs.) To record sales allowance.)

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