On June 10, Pharoah Company purchased $ 8,500 of merchandise on account from Flounder Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $ 520 on June 11. Damaged goods totaling $ 500 are returned to Flounder for credit on June 12. The fair value of these goods is $ 70. On June 19, Pharoah pays Flounder Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction for Flounder Company. The merchandisepurchased by Pharoah on June 10 had cost Flounder $ 5,100. (Credit account titles areautomatically indented when amount is entered. Do not indent manually. Recordjournal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebit(To record credit sale)(To record cost of merchandise sold)(To record merchandise returned)(To record cost of merchandise returned) On June 10, Pharoah Company purchased $ 8,500 of merchandise on account from FlounderCompany, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $ 520 onJune 11. Damaged goods totaling $ 500 are returned to Flounder for credit on June 12. Thefair value of these goods is $ 70. On June 19, Pharoah pays Flounder Company in full, less thepurchase discount. Both companies use a perpetual inventory system.(a)Prepare separate entries for each transaction on the books of Pharoah Company. (Creditaccount titles are automatically indented when amount is entered. Do not indentmanually. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebit

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Answered: On June 10, Pharoah Company purchased $…

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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On June 10, Pharoah Company purchased $ 8,500 of merchandise on account from Flounder Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $ 520 on June 11. Damaged goods totaling $ 500 are returned to Flounder for credit on June 12. The fair value of these goods is $ 70. On June 19, Pharoah pays Flounder Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Prepare separate entries for each transaction for Flounder Company. The merchandise
purchased by Pharoah on June 10 had cost Flounder $ 5,100. (Credit account titles are
automatically indented when amount is entered. Do not indent manually. Record
journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
(To record credit sale)
(To record cost of merchandise sold)
(To record merchandise returned)
(To record cost of merchandise returned)

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