On June 10, Tuzun Company purchased $6,400 of merchandise from Epps Company, FOB shipping point, terms 1/10, n/30. Tuzun pays the freight costs of $560 on June 11. Damaged goods totaling $300 are returned to Epps for credit on June 12. The fair value of these goods is $70. On June 19, Tuzun pays Epps Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Date Account Titles and Explanation June 10 a Inventory Accounts payable June 11 a Inventory Cash June 12 Accounts Payable Inventory June 19 a Accounts payable Inventory Cash Debit 6,400 560 300 6,100 Credit 6,400 560 300 6,039