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Question - Presented below are transactions related to Pharoah Company.
1. On December 3, Pharoah Company sold $606,000 of merchandise on account to Flounder Co., terms 3/10, n/30, FOB destination. Pharoah paid $380 for freight charges. The cost of the merchandise sold was $384,100.
2. On December 8, Flounder Co. was granted an allowance of $29,500 for merchandise purchased on December 3.3.On December 13, Pharoah Company received the balance due from Flounder Co.
Required - Prepare the journal entries to record these transactions on the books of Pharoah Company using a perpetual inventory system.
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