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On June 10, Cavalier Company purchased $8,000 of merchandise from Wahoo Company, FOB shipping point,...

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Accounting

On June 10, Cavalier Company purchased $8,000 of merchandise from Wahoo Company, FOB shipping point, terms 3/10, n/30. The merchandise purchased by Cavalier cost Wahoo $4,800. Cavalier pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Wahoo for credit on June 12. The fair value of these goods is $70. On June 19, Cavalier pays Wahoo Company in full, less the purchase discount. Both companies use a perpetual inventory system.

The journal entry that Wahoo prepares on June 19 includes which of the following? Select all that apply.

Group of answer choices

Credit to Cash for $7,469

Debit to Cash for $7,700

Credit to Sales Discounts for $231

Debit to Inventory $300

Credit to Accounts Receivable for $8,000

Credit to Accounts Receivable for $7,700

Debit to Sales Discounts for $7,700

Debit to Cash for $7,469

Debit to Sales Discounts for $231

Debit to Sales Returns and Allowances for $300

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