Redbird Corporation is a manufacturer of purses. They sell products to Titan Company, a women's clothing store. Both companies use perpetual inventory systems.

On June 3, 2020, Redbird Corporation sold 300 purses on account to Titan Company. Redbird's cost was $30,000 ($100 each) and the selling price was $45,000 ($150 each) with terms of 2/10, n/30.

1.Prepare the June 3 journal entry(ies) for Redbird Corporation.

2.Prepare the June 3 journal entry(ies) for Titan Company.

The freight terms on the June 3 transaction were F.O.B. shipping point. The freight (shipping) cost of $1,000 was paid in cash to ABC Trucking on June 5.

1.Which company must pay the freight charges?

2.Prepare the June 5 journal entry for the company paying the freight.