Exercise 5-4 On June 10, Tuzun Company purchased $6,950 of merchandise from Epps Company, FOB shipping point, terms 1/10, n/30. Tuzun pays the freight costs of $460 on June 11. Damaged goods totaling $450 are returned to Epps for credit on June 12. The fair value of these goods is $80. On June 19, Tuzun pays Epps Company in full, less the purchase discount. Both companies use a perpetual inventory system.

1-Prepare separate entries for each transaction on the books of Tuzun Company.

2-Prepare separate entries for each transaction for Epps Company. The merchandise purchased by Tuzun on June 10 had cost Epps $4,800