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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Prepare separate entries for each transaction for Ayayai Company. The merchandise purchased by Blue Spruce on June 10 cost
Ayayai $4,800, and the goods returned cost Ayayai $269. (Credit account titles are automatically indented when amount is entered. Do
not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in
the order presented in the problem.)
Account Titles and Explanation
Date
June 11
June 11
June 12
June 12
June 19
June 19
Accounts Receivable
Sales Revenue
(To record credit sale)
(To record cost of merchandise sold)
Sales Returns and Allowances
Accounts Payable
Cost of Goods Sold
Inventory
(To record merchandise returned)
Inventory
Cost of Goods Sold
(To record cost of merchandise returned)
Cash
Sales Discounts
Accounts Receivable
Debit
4800
269
DUO
Credit
41

Transcribed Image Text: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.
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