E5.4 (LO 2,3) On June 10, York Gifts purchased 7,600 of merchandise from Bianchi Designs, FOB shipping point, terms 2/10, n/30. York pays the freight costs of 400 on June 11. Damaged goods totaling 300 are returned to Bianchi for credit on June 12. The fair value of these goods is 70. On June 19, York pays Bianchi in full, less the purchase discount. Both companies use a perpetual inven- tory system. Instructions a. Prepare separate entries for each transaction on the books of York. b. Prepare separate entries for each transaction for Bianchi. The merchandise purchased by York on June 10 had cost Bianchi 4,300