Exercise 5-4 On June 10, Kingbird, Inc. purchased $7,400 of merchandise on account from Ayayai Company, FOB shipping point, terms 1/10, n/30. Kingbird, Inc. pays the freight costs of $460 on June 11. Damaged goods totaling $400 are returned to Ayayai for credit on June 12. The fair value of these goods is $70. On June 19, Kingbird, Inc. pays Ayayai Company in full, less the purchase discount. Both companies use a perpetual inventory system Prepare separate entries for each transaction on the books of Kingbird, Inc.. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Credit AcCount Titles and Explanation Debit Date Prepare separate entries for each transaction for Ayayai Company. The merchandise purchased by Kingbird, Inc. on June 10 had cost Ayayai $4,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Date (To record credit sale) (To record cost of merchandise sold) (To record merchandise returned) (To record cost of merchandise returned) June 19 Screenshot saved