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On June 10, Sheridan Company purchased $7,700 of merchandise from Crane Company, terms 3/10, n/30. Sheridan...

On June 10, Sheridan Company purchased $7,700 of merchandise from Crane Company, terms 3/10, n/30. Sheridan Company pays the freight costs of $430 on June 11. Goods totaling $800 are returned to Crane Company for credit on June 12. On June 19, Sheridan Company pays Crane Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Prepare separate entries for each transaction for Crane Company. The merchandise purchased by Sheridan Company on June 10 cost Crane Company $2,440, and the goods returned cost Crane Company $270.

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