Fortuna Retailers and Bello Distributors had the following transactions in June. Both companies use a

perpetual inventory system and the earnings approach for revenue recognition.

June $1$ Fortuna Retailers purchased merchandise inventory for resale from Bello Distribu$-$

tors for $$8,500.$ Terms of purchase were $\frac{2}{10},\frac{n}{30},$ FOB shipping point.

$2$ The correct company paid $$175$ cash for freight charges.

$3$ Fortuna noted that some of the goods were not exactly as ordered and returned the

goods to Bello Distributors. Bello Distributors granted Fortuna a $$500$ purchase return.

$10$ Fortuna paid Bello Distributors the amount owing.

Additional information for Bello Distributors:

The cost of the merchandise sold on June $1$ was $$5,300.$

The cost of the merchandise returned on June $3$ was $$300.$ The goods were returned to inventory.

Instructions

a$.$ Journalize the June transactions for Fortuna Retailers.

b$.$ Journalize the June transactions for Bello Distributors.