Question #$5$

The following are transactions for Latest Fashions for the month of June.

June $2$ Purchased $$2,000$ of inventory under terms $1/10,\frac{n}{60}$ and

FOB shipping point from Trendy Manufacturing. The merchandise had cost Trendy $$1,800.$

June $7$ Returned defective merchandise to Trendy Manufacturing with invoice price of $$400.$

June $8$ Paid the freight charges on the purchase from Trendy Manufacturing in cash for $$100.$

June $9$ Sold merchandise to New Miss Store on account for $$5,000$ with terms $\frac{2}{15},\frac{n}{60}$ FOB shipping point. Cost of the merchandise sold was $$4,000.$

June $10$ Paid Trendy Manufacturing the balance on account.

June $12$ Granted sales allowance of $$300$ to New Miss Store for defective merchandise.

June $23$ Collected balance owed from New Miss Store.

Prepare the journal entries for Latest Fashions AND for Trendy Manufacturing for the transactions listed, assuming that both companies use a perpetual inventory system.