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Problem: On June 10, Pais Company purchased $9000 of merchandise from McGiver copany, term 3/10, n/30. Pais pays the freight costs of $400 on June 11. Goods totalling $600 are returned to McGiver for credit on June 12. On June 19, Pais company pays McGiver copmay in full, less the purchase discount. Both companies use a perpetual inventory system.
Required:
Question 1: Prepare seperate entries for each transaction on the books of Pais Company
Question 2: Prepare seperate entries for each transaction for McGiver copany. The merchandise purchased by Pais on June 10 cost McGiver $5000, and goods returned cost McGiver $310.
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