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On June 10, Blossom Company purchased $8,000 of merchandise on account from Ayayal Company, FOB shipping point, terms 1/10, n/30. Blossom pays the freight costs
On June 10, Blossom Company purchased $8,000 of merchandise on account from Ayayal Company, FOB shipping point, terms 1/10, n/30. Blossom pays the freight costs of $ 410 on June 11. Damaged goods totaling $ 300 are returned to Ayayai for credit on June 12 The fair value of these goods is $ 70. On June 19, Blossom pays Ayayai Company in full, less the purchase discount. Both companies use a perpetual inventory system. (a) -- Your answer is partially correct. Prepare separate entries for each transaction on the books of Blossom 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.) Date Account Titles and Explanation Debit Credit June 102 Inventory 8000 Accounts Payable 3000 June 11 Inventor
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