On June 10, Wildhorse Company purchased $9,500 of merchandise on account from Novak Company, FOB shipping point, terms 2/10, n/30. Wildhorse pays the freight costs of $590 on June 11. Damaged goods totaling $350 are returned to Novak for credit on June 12. The fair value of these goods is $75. On June 19, Wildhorse pays Novak Company in full, less the purchase discount. Both companies use a perpetual inventory system. how do i prepare a entrie transaction for the items that i have attached? Prepare separate entries for each transaction for Novak Company. The merchandise purchased by Wildhorse on June 10 hadcost Novak $5,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journalentries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCredit(To record credit sale)(To record cost of merchandise sold)(To record merchandise returned)(To record cost of merchandise returned)

Sales discount = Net sales x discount rate = $9,150 x 2% = $183

Answered: On June 10, Wildhorse 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, Wildhorse Company purchased $9,500 of merchandise on account from Novak Company, FOB shipping point, terms 2/10, n/30. Wildhorse pays the freight costs of $590 on June 11. Damaged goods totaling $350 are returned to Novak for credit on June 12. The fair value of these goods is $75. On June 19, Wildhorse pays Novak Company in full, less the purchase discount. Both companies use a perpetual inventory system.

how do i prepare a entrie transaction for the items that i have attached?

Prepare separate entries for each transaction for Novak Company. The merchandise purchased by Wildhorse on June 10 had
cost Novak $5,500. (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
(To record credit sale)
(To record cost of merchandise sold)
(To record merchandise returned)
(To record cost of merchandise returned)

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