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On June 10, Sarasota Company purchased $8,950 of merchandise on account from Riverbed Company, FOB shipping point, terms 2/10, n/30. Sarasota pays the freight costs
On June 10, Sarasota Company purchased $8,950 of merchandise on account from Riverbed Company, FOB shipping point, terms 2/10, n/30. Sarasota pays the freight costs of $590 on June 11. Goods totaling $750 are returned to Riverbed for credit on June 12. On June 19, Sarasota pays Riverbed Company in full, less the discount. Both companies use a perpetual inventory system. (a) Your answer is correct. Prepare separate entries for each transaction on the books of Sarasota Company. (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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation June 10 Inventory Accounts Payable June 11 Inventory Cash Debit Credit 8,950 590 June 12 Accounts Payable 750 Inventory June 19 Accounts Payable 8200 Inventory Cash 8,950 590 750 164 8036 (b) Prepare separate entries for each transaction for Riverbed Company. The merchandise purchased by Sarasota on June 10 cost Riverbed $5,100, and the goods returned cost Riverbed $252. (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 O for the amounts. 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)
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