On June 10, Taylor Company sold $8,000 of merchandise to Diaz Company, FOB shipping point, terms...

Transcribed Image Text:

On June 10, Taylor Company sold $8,000 of merchandise to Diaz Company, FOB shipping point, terms 2/10, n/30. The merchandise purchased by Diaz on June 10 cost Taylor $4,800. Diaz pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Taylor for credit on June 12. The fair value of these goods is $70. On June 19, Diaz pays Taylor Company in full, less the purchase discount. Prepare separate entries for each transaction for Taylor Company for June 12 and June 19 using the perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record credit granted for receipt of returned goods) (To record fair value of goods returned) (To record payment in full less purchase discount) On June 10, Taylor Company sold $8,000 of merchandise to Diaz Company, FOB shipping point, terms 2/10, n/30. The merchandise purchased by Diaz on June 10 cost Taylor $4,800. Diaz pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Taylor for credit on June 12. The fair value of these goods is $70. On June 19, Diaz pays Taylor Company in full, less the purchase discount. Prepare separate entries for each transaction for Taylor Company for June 12 and June 19 using the perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record credit granted for receipt of returned goods) (To record fair value of goods returned) (To record payment in full less purchase discount)