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. (a) Your answer is partially correct. Prepare separate entries for each transaction on the books of Pharoah Company. (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 Credit June 10 v Inventory 8,500 Accounts Payable 8,500 June 11 v Inventory 520 Cash 520 June 12 v Accounts Payable 500 Inventory 500 June 19 v Accounts Payable Inventory Cash MacBook Pro

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
(a)
Your answer is partially correct.
Prepare separate entries for each transaction on the books of Pharoah Company. (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
Credit
June 10 v
Inventory
8,500
Accounts Payable
8,500
June 11 v
Inventory
520
Cash
520
June 12 v
Accounts Payable
500
Inventory
500
June 19 v
Accounts Payable
Inventory
Cash
MacBook Pro
Transcribed Image Text: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. (a) Your answer is partially correct. Prepare separate entries for each transaction on the books of Pharoah Company. (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 Credit June 10 v Inventory 8,500 Accounts Payable 8,500 June 11 v Inventory 520 Cash 520 June 12 v Accounts Payable 500 Inventory 500 June 19 v Accounts Payable Inventory Cash MacBook Pro
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