Urgent

On June 10, XX Company purchased $20,000 of merchandise from EMU Company, FOB shipping point, terms 3/10, n/30. XX pays the freight costs of $700 on June 11. Damaged goods totaling $500 are returned to EMU for credit on June 12. The fair value of these goods is $250. On June 19, XX pays EMU in full, less the purchase discount. Both companies use a perpetual inventory system.

Instructions:

(a) Prepare separate entries for each transaction on the books of XX Company.

(b) Prepare separate entries for each transaction for EMU Company. The merchandise purchased by XX on June 10 had cost EMU $5,300.