The following transactions occurred between Cloutier Pharmaceuticals and Arnold Drug Stores during June of the current year:

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The following transactions occurred between Cloutier Pharmaceuticals and Arnold Drug Stores during June of the current year:
Jun. 8 Arnold purchased $29,400 of merchandise from Cloutier on credit terms 2/10, n/30, FOB shipping point. Separately, Arnold paid freight-in of $600. Cloutier invoiced Arnold for $29,400. These goods cost Cloutier $12,600.
11 Arnold returned $3,600 of the merchandise purchased on June 8. Cloutier issued a credit memo for this amount and returned the goods, in excellent condition, to inventory (cost $1,500).
17 Arnold paid $12,000 of the invoice amount owed to Cloutier for the June 8 purchase. This payment included none of the freight charge. Arnold took the purchase discount on the partial payment.
26 Arnold paid the remaining amount owed to Cloutier for the June 8 purchase.
Required
Journalize these transactions, first on the books of Arnold Drug Stores, and second on the books of Cloutier Pharmaceuticals. Both companies use the perpetual inventory system.
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Horngrens Accounting

ISBN: 978-0133855371

10th Canadian edition Volume 1

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood

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