Question

# Exercise 5-05 On June 10, Marin Company purchased \$7,300 of merchandise from Cullumber Company, on account,...

Exercise 5-05

On June 10, Marin Company purchased \$7,300 of merchandise from Cullumber Company, on account, terms 3/10, n/30. Marin pays the freight costs of \$360 on June 11. Goods totaling \$500 are returned to Cullumber for credit on June 12. On June 19, Marin Company pays Cullumber Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Prepare separate entries for each transaction on the books of Marin Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Journal entries in the books of Marin Company-

 Date Accounts Debit Credit Calculation 10-Jun Inventory A/c---Dr 7,081.00 7300*(1-3%) To Accounts Payable A/c 7,081.00 (Being goods purchased from Cullumber company on 3/10, net 30 terms) 11-Jun Inventory A/c---Dr 300.00 To Cash A/c 300.00 (Being freight paid) 12-Jun Accounts Payable A/c---Dr 485.00 500*(1-3%) To Inventory A/c 485.00 (Being goods returned) 19-Jun Accounts Payable A/c---Dr 6,596.00 To Cash A/c 6,596.00 (Being cash paid to Cullumber Company)

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