On June 10, Tamarisk Company purchased $6,800 of merchandise from Carla Vista Company, on account, terms 4/10, n/30. Tamarisk pays the freight costs of $430 on June 11. Goods totaling $300 are returned to Carla Vista for credit on June 12. On June 19, Tamarisk Company pays Carla Vista Company in full, less the purchase discount. Both companies use a perpetual inventory system.
On June 10, Tamarisk Company purchased $6,800 of merchandise from Carla Vista Company, on account, terms 4/10, n/30. Tamarisk pays the freight costs of $430 on June 11. Goods totaling $300 are returned to Carla Vista for credit on June 12. On June 19, Tamarisk Company pays Carla Vista Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On June 10, Tamarisk Company purchased $6,800 of merchandise from Carla Vista Company, on account, terms 4/10, n/30.
Tamarisk pays the freight costs of $430 on June 11. Goods totaling $300 are returned to Carla Vista for credit on June 12. On
June 19, Tamarisk Company pays Carla Vista Company in full, less the purchase discount. Both companies use a perpetual
inventory system.
Transcribed Image Text:Prepare separate entries for each transaction for Carla Vista Company. The merchandise purchased by Tamarisk on June
10 cost Carla Vista $2,700, and the goods returned cost Carla Vista $230. (If no entry is required, select "No entry" for the
account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent
manually. Record journal entries in the order presented in the problem.)
Account Titles and Explanation
Date
V
(To record credit sale)
(To record cost of goods sold)
(To record credit sale)
(To record cost of goods returned)
Debit
Credit
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