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On June 10, Rebecca Company purchased $9,300 of merchandise from Clinton Company, FOB shipping point, terms 2/10, n/30. Rebecca pays the freight costs of $590 on June 11. Damaged goods totaling $300 are returned to Clinton for credit on June 12. The fair value of these goods is $110. On June 19, Rebecca pays Clinton 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 Rebecca Company.
(b) Prepare separate entries for each transaction for Clinton Company. The merchandise purchased by Rebecca on June 10 had cost Clinton $5,390.
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