Exercise 5-04 a-b (Video) On June 10, Pharoah Company purchased $6,450 of merchandise on account from Riverbed Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $480 on June 11. Damaged goods totaling $350 are returned to Riverbed for credit on June 12. The fair value of these goods is $70. On June 19, Pharoah pays Riverbed Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction on the books of Pharoah Company. (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 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Prepare separate entries for each transaction for Riverbed Company. The merchandise purchased by Pharoah on June 10 had cost Riverbed $5,500. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record credit sale) (To record cost of merchandise sold) (To record merchandise returned) (To record cost of merchandise returned)