A. On June 10, Crane Company purchased $9,000 of merchandise on account from Pronghorn Company, FOB shipping point, terms 2/10, n/30. Crane pays the freight costs of $550 on June 11. Damaged goods totaling $350 are returned to Pronghorn for credit on June 12. The fair value of these goods is $80. On June 19, Crane pays Pronghorn Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Prepare separate entries for each transaction on the books of Crane Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

B.

Presented below are transactions related to Wildhorse Company. Prepare the journal entries to record these transactions on the books of Wildhorse Company using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1.		On December 3, Wildhorse Company sold $593,600 of merchandise on account to Novak Co., terms 4/10, n/30, FOB destination. Wildhorse paid $430 for freight charges. The cost of the merchandise sold was $383,200.
2.		On December 8, Novak Co. was granted an allowance of $29,300 for merchandise purchased on December 3.
3.		On December 13, Wildhorse Company received the balance due from Novak Co.