View Policies Current Attempt in Progress The following transactions were recorded by an inexperienced bookkeeper during the months of June and July for Blossom Company. Blossom Company uses a perpetual inventory system. June 10 11 12 20 A purchase of $3,700 of merchandise from DanDan Distributors was debited to Purchases and credited to Cash. The terms of the purchase were 2/10.n/30. FOB shipping point. The invoice for freight in the amount of $215 for the delivery of merchandise purchased from DanDan was paid and was debited to Delivery Expense. Damaged goods totalling $400 were returned to DanDan Distributors for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. A payment was made to DanDan Distributors for $3,700. The payment was a debit to Purchases and a credit to Cash. Blossom sold goods for $9.205. Sales was credited and Cost of Goods Sold was debited for this amount. The cost of the inventory sold was $3.300. The terms of the sale were 1/15. n/30, FOB destination. Freight charges on the above transaction were debited to Accounts Receivable and credited to Cash for $135. The bookkeeper believed the customer had to pay for the freight charges. Blossom's manager gave the customer from July 15 a $200 allowance. The entry made to record the allowance was a debit to Sales and a credit to Sales Returns and Allowances, July 15 15 17 Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for the transaction. 5 K Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for the transaction. June 10 11 12 20 A purchase of $3,700 of merchandise from DanDan Distributors was debited to Purchases and credited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point. The invoice for freight in the amount of $215 for the delivery of merchandise purchased from DanDan was paid and was debited to Delivery Expense. Damaged goods totalling $400 were returned to Dan Dan Distributors for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. A payment was made to DanDan Distributors for $3.700. The payment was a debit to Purchases and a credit to Cash. Blossom sold goods for $9.205: Sales was credited and Cost of Goods Sold was debited for this amount. The cost of the inventory sold was $3.300. The terms of the sale were 1/15. n/30. FOB destination. Freight charges on the above transaction were debited to Accounts Receivable and credited to Cash for $135. The bookkeeper believed the customer had to pay for the freight charges. Blossom's manager gave the customer from July 15 a $200 allowance. The entry made to record the allowance was a debit to Sales and a credit to Sales Returns and Allowances. July 15 15 17 If you disagreed with any of the accounting entries above, prepare the correct entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit June 10 v Merchandise Inventory Accounts Payable (To record purchase on account.) June 11 v Merchandise Inventory Cash (To record cash payment for freight costs.) June 12 v Accounts Payable Merchandise Inventory (To record purchase return.) June 20 D - -/21 Merchandise Inventory (To record purchase return.) June 20, (To record payment on account.) July 15 (To record sales on account.) July 15 (To record cost of goods sold.) July 15 (Cash payment for freight costs.) July 17 CD (To record sales on account.) July 15 (To record cost of goods sold.) July 15 V (Cash payment for freight costs.) July 17 (To record sales allowance.)