On June 10, Diaz Company purchased $8,000 of merchandise from Taylor Company, FOB shipping point, terms 2/10, n/30. Diaz pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Taylor for credit on June 12. On June 19, Diaz pays Taylor Company in full, less the purchase discount. Both companies use a perpetual inventory system. 

Instructions 

Prepare separate entries for each transaction on the books of Diaz Company.