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E5-4 - E5-4 Correct On June 10 Meredith Company purchased...

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E5-4 Correct. On June 10, Meredith Company purchased $8,000 of merchandise from Leinert Company FOB shipping point, terms 2/10, n/30. Meredith pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Leinert for credit on June 12. The scrap value of these goods is $150. On June 19, Meredith pays Leinert Company in full, less the purchase discount. Both companies use a perpetual inventory system. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Instructions (a) Prepare separate entries for each transaction on the books of Meredith Company. Date Account / Description Debit Credit June 10 Merchandise Inventory $ 8000 Accounts Payable $ 8000 June 11 Merchandise Inventory $ 400 Cash $ 400
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