On June 10, Whispering Winds Corp. purchased $8,400 of merchandise on account from Martinez Company, FOB shipping point, terms 3/10, n/30. Whispering Winds Corp. pays the freight costs of $460 on June 11. Goods totaling $600 are returned to Martinez for credit on June 12. On June 19, Whispering Winds Corp. pays Martinez Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Prepare separate entries for each transaction on the books of Whispering Winds Corp.. (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 0 for the amounts. Record journal entries in the order presented in the problem.) Prepare separate entries for each transaction for Martinez Company. The merchandise purchased by Whispering Winds Corp. on June 10 cost Martinez $4,800, and the goods returned cost Martinez $264. (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 0 for the amounts. Record journal entries in the order presented in the problem.)
