On June 10, Marin Company purchased $8,400 of merchandise from Cullumber Company, on account, terms 3/10, n/30. Marin pays the freight costs of $380 on June 11. Goods totaling $500 are returned to Cullumber for credit on June 12. On June 19, Marin Company pays Cullumber Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction on the books of Cullumber Company

Question

Business

Kale Chapman

27 January, 04:59

On June 10, Marin Company purchased $8,400 of merchandise from Cullumber Company, on account, terms 3/10, n/30. Marin pays the freight costs of $380 on June 11. Goods totaling $500 are returned to Cullumber for credit on June 12. On June 19, Marin Company pays Cullumber Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction on the books of Cullumber Company

+2

Answers (1)

Know the Answer?

Kaiden Mcclure · Answer 1

Debit Credit

June 10 Accounts Receivables $8400

Merchandise $8400

June 12 Merchandise $500

Accounts Receivables $500

June 19 Cash 7663

Discount 237

Accounts Receivables $7900