Duvall Ltd. and Pele Ltd. incurred the following merchandise transactions in June.

June 10 Duvall sold $5,000 of merchandise to Pele, terms 1/10, n/30, FOB shipping point. The merchandise cost Duvall $3,000 when it was originally purchased.

11 Freight costs of $250 were paid by the appropriate company.

12 Duvall received damaged goods returned by Pele for credit. The goods were originally sold for $500; the cost of the returned merchandise was $300. The merchandise was not returned to inventory.

19 Duvall received full payment from Pele.

Instructions

(a) Prepare journal entries for each transaction in the books of Duvall Ltd., assuming

(1) A perpetual inventory system is used, and

(2) A periodic inventory system is used.

(b) Prepare journal entries for each transaction for Pele Ltd., assuming

(1) A perpetual inventory system is used, and

(2) A periodic inventory system is used.