Prepare separate entries for each transaction for Sheridan Company. The merchandise purchased by Sheridan Company on June 10 cost McGiver $2,000, and the goods returned cost Sheridan Company $200. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

On June 10, Crane Company purchased $6,100 of merchandise from Sheridan Company, terms 2/10, n/30. Crane Company pays the freight costs of $360 on June 11. Goods totaling $400 are returned to Sheridan Company for credit on June 12. On June 19, Crane Company pays Sheridan Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Date Account Titles and Explanation Debit Credit To record credit sale) To record cost of goods sold) To record credit sale) To record cost of goods returned) June 19