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Whispering Winds Ltd. and Ayayai Ltd. incurred the following merchandise transactions in June.
June
10 Whispering Winds sold $5,900 of merchandise to Ayayai, terms 1/10, n/30, FOB shipping point. The merchandise cost Duvall $3,540 when it was originally purchased.
11 Freight costs of $340 were paid by the appropriate company.
12 Whispering Winds received damaged goods returned by Ayayai for credit. The goods were originally sold for $400; the cost of the returned merchandise was $240. The merchandise was not returned to inventory.
19 Whispering Winds received full payment from Ayayai.
Question point (1) Perpetual Inventory System
Question point (2) Periodic Inventory System
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