The following transactions were recorded by an inexperiencedbookkeeper during the months of June and July for Ivanhoe Company.Ivanhoe Company uses a perpetual inventory system.

June 10		A purchase of $4,500 of merchandise from DanDan Distributorswas debited to Purchases and credited to Cash. The terms of thepurchase were 2/10, n/30, FOB shipping point.
11		The invoice for freight in the amount of $195 for the deliveryof merchandise purchased from DanDan was paid and was debited toDelivery Expense.
12		Damaged goods totalling $200 were returned to DanDanDistributors for credit. The bookkeeper recorded a debit toAccounts Receivable and a credit to Sales Returns andAllowances.
20		A payment was made to DanDan Distributors for $4,500. Thepayment was a debit to Purchases and a credit to Cash.
July 15		Ivanhoe sold goods for $9,225; Sales was credited and Cost ofGoods Sold was debited for this amount. The cost of the inventorysold was $4,300. The terms of the sale were 1/15, n/30, FOBdestination.
15		Freight charges on the above transaction were debited toAccounts Receivable and credited to Cash for $195. The bookkeeperbelieved the customer had to pay for the freight charges.
17		Ivanhoe’s manager gave the customer from July 15 a $220allowance. The entry made to record the allowance was a debit toSales and a credit to Sales Returns and Allowances.

Review each transaction below and indicate whether you agree ordisagree with how the bookkeeper accounted for thetransaction.

June 10		A purchase of $4,500 of merchandise from DanDan Distributorswas debited to Purchases and credited to Cash. The terms of thepurchase were 2/10, n/30, FOB shipping point.		AgreeDisagree
11		The invoice for freight in the amount of $195 for the deliveryof merchandise purchased from DanDan was paid and was debited toDelivery Expense.		AgreeDisagree
12		Damaged goods totalling $200 were returned to DanDanDistributors for credit. The bookkeeper recorded a debit toAccounts Receivable and a credit to Sales Returns andAllowances.		AgreeDisagree
20		A payment was made to DanDan Distributors for $4,500. Thepayment was a debit to Purchases and a credit to Cash.		AgreeDisagree
July 15		Ivanhoe sold goods for $9,225; Sales was credited and Cost ofGoods Sold was debited for this amount. The cost of the inventorysold was $4,300. The terms of the sale were 1/15, n/30, FOBdestination.		AgreeDisagree
15		Freight charges on the above transaction were debited toAccounts Receivable and credited to Cash for $195. The bookkeeperbelieved the customer had to pay for the freight charges.		AgreeDisagree
17		Ivanhoe’s manager gave the customer from July 15 a $220allowance. The entry made to record the allowance was a debit toSales and a credit to Sales Returns and Allowances.		AgreeDisagree

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List of Accounts

  

  

If you disagreed with any of the accounting entries above,prepare the correct entries. (Credit account titles areautomatically indented when the amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for theaccount titles and enter 0 for the amounts. Record journal entriesin the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
June 10June11June 12June 20July 15July 17
	(To record purchase on account.)
June 10June11June 12June 20July 15July 17
	(To record cash payment for freight costs.)
June 10June11June 12June 20July 15July 17
	(To record purchase return.)
June 10June11June 12June 20July 15July 17
	(To record payment on account.)
June 10June11June 12June 20July 15July 17
	(To record sales on account.)
June 10June11June 12June 20July 15July 17
	(To record cost of goods sold.)
June 10June11June 12June 20July 15July 17
	(Cash payment for freight costs.)
June 10June11June 12June 20July 15July 17
	(To record sales allowance.)