13 4 8 Instructions oman Co. for $32.000, terms 2/10, n/30, FOB system destination. This merchandise cost Pippen Company $18,000. The correct company paid freight charges of $650. Thomas Co. returned unwanted merchandise to Pippen. The returned merchandise had a sales price of $1,800 and a cost of $990. It was restored to inventory. Pippen Company received the balance due from Thomas Co. (a) Prepare the journal entries to record these transactions on the books of Pippen Company. (b) Prepare the journal entries to record these transactions on the books of Thomas Co. (c) Calculate the gross profit earned by Pippen on the above transactions. E5-6 The following transactions occurred in June and July. Pele Company uses a perpetual inventory system. Rec June 10 Pele Company purchased $4,000 of merchandise from Duvall Company, terms 2/10, n/30, 11 FOB shipping point. The correct company paid $375 of freight costs to Hoyt Movers. 12 Damaged goods totalling $200 were returned to Duvall for credit. 20 Pele paid Duvall Company in full. July 15 Pele sold all of the remaining merchandise purchased from Duvall for $9,275 cash. 15 Pele paid $350 of freight costs to AAA Transit to deliver the goods to the customer. 17 Pele gave its customer a $500 cash sales allowance for damaged goods. Pele uses a perpetual inventory system. Instructions (a) Record each of the above transactions on the books of Pele Company. (b) Prepare closing entries on July 31 for the temporary accounts. E5-7/Delta Furniture Supply sells various furniture items and uses a perpetual inventory system. November 1 it had no tables in stock. The following transactions occurred during November: tra er Itd for $13.500, terms n/30, FC