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Question - On June 10 Oriole Company purchased $7,500 of merchandise from Ivanhoe Company terms 2/10, n/30. Oriole Company pays the freight cost of $360 on June 11. Goods totaling $300 are returned to Ivanhoe Company for credit on June 12. On June 19 Oriole Company pays Ivanhoe 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 Oriole Company.
b. Prepare separate entries for each transaction for Ivanhoe company. The merchandise purchased by Ivanhoe company on June 10. Cost McGiver $2960 and the goods returned cost Ivanhoe company $200?
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