On June 10, Rothlisberger Company purchased $12,000 of merchandise from Lester Company, FOB shipping point, terms...

 

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On June 10, Rothlisberger Company purchased $12,000 of merchandise from Lester Company, FOB shipping point, terms 2/10, n/30. Rothlisberger pays the freight costs of $500 on June 11. Damaged goods totaling $700 are returned to Lester for credit on June 12. The fair value of these goods is $300. On June 19, Rothlisberger pays Lester Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare journal entries to record the following transactions in the books of Rothlisberger (Buyer): 1. Purchase 2. Freight 3. Return 4. Payment On June 10, Rothlisberger Company purchased $12,000 of merchandise from Lester Company, FOB shipping point, terms 2/10, n/30. Rothlisberger pays the freight costs of $500 on June 11. Damaged goods totaling $700 are returned to Lester for credit on June 12. The fair value of these goods is $300. On June 19, Rothlisberger pays Lester Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare journal entries to record the following transactions in the books of Rothlisberger (Buyer): 1. Purchase 2. Freight 3. Return 4. Payment

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