Answer:
In the books of:
Paid Company:
June 10:
Debit Inventory $9,000
Credit Accounts payable (McGiver Company) $9,000
To record the purchase of goods on account, terms 3/10, n/30.
June 11:
Debit Freight-in $400
Credit Cash $400
To record the payment of freight for purchased goods.
June 12:
Debit Accounts payable (McGiver Company) $600
Credit Inventory $600
To record the return of goods to supplier.
June 19:
Debit Accounts payable (McGiver Company) $8,400
Credit Cash $8,148
Credit Cash Discount $252
To record the payment on account.
McGiver Company:
June 10:
Debit Accounts receivable (Paid Company) $9,000
Credit Sales $9,000
To record the sale of goods on account, terms 3/10, n/30.
Debit Cost of goods sold $5,000
Credit Inventory $5,000
To record the cost of goods sold.
June 12:
Debit Sales returns $600
Credit Accounts receivable (Paid Company) $600
To record the return of goods on account.
Debit Inventory $310
Credit Cost of goods sold $310
To record the cost of goods returned.
June 19:
Debit Cash $8,148
Debit Cash Discount $252
Credit Accounts receivable (Paid Company) $8,400
To record the receipt of cash from customer.
Step-by-step explanation:
a) Data and Analysis:
Paid Company:
June 10: Inventory $9,000 Accounts payable $9,000, terms 3/10, n/30.
June 11: Freight-in $400 Cash $400
June 12: Accounts payable $600 Inventory $600
June 19: Accounts payable $8,400 Cash $8,148 Cash Discount $252
McGiver Company:
June 10: Accounts receivable $9,000 Sales $9,000, terms 3/10, n/30.
Cost of goods sold $5,000 Inventory $5,000
June 12: Sales returns $600 Accounts receivable $600
Inventory $310 Cost of goods sold $310
June 19: Cash $8,148 Cash Discount $252 Accounts receivable $8,400