Question

On June 10, Pharoah Company purchased $7,600 of merchandise from Cullumber Company, terms 4/10, n/30. Pharoah Company pays the freight costs of $390 on June 11. Goods totaling $500 are returned to Cullumber Company for credit on June 12. On June 19, Pharoah Company pays Cullumber Company in full, less the purchase discount. Both companies use a perpetual inventory system. (a) Prepare separate entries for each transaction on the books of Pharoah Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (b) The parts of this question must be completed in order. This part will be available when you complete the part above.

Answer 1

The answer and procedures of the exercise are attached in a excel document screenshot.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.