On June 10, Pharoah Company purchased $8,700 of merchandise from Sheridan Company, on account, terms 3/10,...

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On June 10, Pharoah Company purchased $8,700 of merchandise from Sheridan Company, on account, terms 3/10, n/30. Pharoah pays the freight costs of $520 on June 11. Goods totaling $600 are returned to Sheridan for credit on June 12. On June 19, Pharoah Company pays Sheridan Company in full, less the purchase discount. Both companies use a perpetual inventory system. Use a tabular summary to record transaction on the books of Pharoah Company. Include margin explanations for the changes in revenues and expenses. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) On June 10, Pharoah Company purchased $8,700 of merchandise from Sheridan Company, on account, terms 3/10, n/30. Pharoah pays the freight costs of $520 on June 11. Goods totaling $600 are returned to Sheridan for credit on June 12. On June 19, Pharoah Company pays Sheridan Company in full, less the purchase discount. Both companies use a perpetual inventory system. Use a tabular summary to record transaction on the books of Pharoah Company. Include margin explanations for the changes in revenues and expenses. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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Date General Journal Debit Credit Jun10 Inventory 8700 Accounts Payable 8700 To record ... View the full answer