On June 10, Diaz Company purchased $8,000 of merchandise on account from Taylor Company, FOB shipping point, terms 2/10, n/30. Diaz pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Taylor for credit on June 12. The fair value of these goods is $70. on June 19, Diaz pays Taylor Company in full, less the purchase discount. Both companies use a perpetual inventory system - (a) Your answer is correct. Prepare separate entries for each transaction on the books of Diaz 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 10 Inventory 8000|| 1 Accounts Payable 8000 1 June 11 Inventory 400 1 1 Cash Cash 400 1 June 12 Accounts Payable 1 Inventory 300 TI 1 June 19 Accounts Payable 35 1 Inventory 154 Cash 7546 Click if you would like to Show Work for this question: Open Show Work Prepare separate entries for each transaction for Taylor Company. The merchandise purchased by Diaz on June 10 had cost Taylor $4,800. (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 (To record credit sale) (To record cost of merchandise sold) (To record merchandise returned) (To record cost of merchandise returned)