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On June 10, Pharoah Company purchased $8,500 of merchandise on account from Flounder Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $520 on June 11. Goods totaling $500 are returned to Flounder for credit on June 12. On June 19, Pharoah pays Flounder Company in full, less the discount. Both companies use a perpetual inventory system. (a) Your answer is correct. Prepare separate entries for each transaction on the books of Pharoah Company. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) ate Account Titles and Explanation 10 Inventory 12 Accounts Payable Inventory Cash Accounts Payable Inventory Debit 8500 520 500 19 Accounts Payable 8000 Inventory Cash eTextbook and Media List of Accounts Credit 8500 520 500 160 7840 Attempts: 1 of 2 used (b) Prepare separate entries for each transaction for Flounder Company. The merchandise purchased by Pharoah on June 10 cost Flounder $5,100, and the goods returned cost Flounder $190. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Cred (To record credit sale) (To record cost of merchandise sold) (To record merchandise returned) (To record cost of merchandise returned) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 2 used Submit

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