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Question: On June 10, Tuzun Company purchased $6,450 of merchandise from Epps Company, FOB shipping point, terms 2/10, n/30. Tuzun pays the freight costs of $480 on June 11. Damaged goods totaling $350 are returned to Epps for credit on June 12. The fair value of these goods is $70.On June 19, Tuzun pays Epps 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 Tuzun Company.
b) Prepare separate entries for each transaction for Epps Company. The merchandise purchased by Tuzun on June 10 had cost Epps $5,500.
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