5- On June 10, Tala Company purchased on account $50,000 of merchandise from Tigare Company, FOB destination, terms 2/10, n/30. Tala pays cash the freight costs of $600 on June 11.

Damaged goods totaling $700 are returned to Tigare for credit on June 12.

On June 19, Tala pays Tigare 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 Tala Company.