Prepare separate entries for each transaction for Ayayai Company. The merchandise purchased by Blue Spruce on June 10 costAyayai $4,800, and the goods returned cost Ayayai $269. (Credit account titles are automatically indented when amount is entered. Donot indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries inthe order presented in the problem.)Account Titles and ExplanationDateJune 11June 11June 12June 12June 19June 19Accounts ReceivableSales Revenue(To record credit sale)(To record cost of merchandise sold)Sales Returns and AllowancesAccounts PayableCost of Goods SoldInventory(To record merchandise returned)InventoryCost of Goods Sold(To record cost of merchandise returned)CashSales DiscountsAccounts ReceivableDebit4800269DUOCredit41 On June 10, Blue Spruce Company purchased $8,400 of merchandise on account from Ayayai Company, FOB shipping point,terms 3/10, n/30. Blue Spruce pays the freight costs of $460 on June 11. Goods totaling $700 are returned to Ayayai for credit onJune 12. On June 19, Blue Spruce pays Ayayai Company in full, less the discount. Both companies use a perpetual inventory system.

On June 10, Blue Spruce Company purchased $8,400 of merchandise on account from Ayayai Company, FOB shipping point, terms 3/10, n/30. Blue Spruce pays the freight costs of $460 on June 11. Goods totaling $700 are returned to Ayayai for credit on June 12. On June 19, Blue Spruce pays Ayayai Company in full, less the discount. Both companies use a perpetual inventory system.

On June 10, Blue Spruce Company purchased $8,400 of merchandise on account from Ayayai Company, FOB shipping point, terms 3/10, n/30. Blue Spruce pays the freight costs of $460 on June 11. Goods totaling $700 are returned to Ayayai for credit on June 12. On June 19, Blue Spruce pays Ayayai Company in full, less the discount. Both companies use a perpetual inventory system.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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