On July 10, Uncle Charlie's purchased $6,000 of candy from Fish Creek Candies, FOB destination, terms 2/10, n/30. Fish Creek pays the freight costs of $400 on July 11. Fish Creek Candies uses a perpetual inventory system. Damaged goods totaling $450 are returned to Fish Creek for credit on July 12. The fair value of these goods is $300. Fish Creek grants an additional allowance of $100 for goods with damaged packaging that Uncle Charlie's agrees to keep. On July 19, Uncle Charlie's pays Fish Creek in full, less the discount.
Prepare entries for Fish Creek Candies required on July 12 and July 19.

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The Answer of On July 10, Uncle Charlie's purchased $6,000 of candy from Fish Creek Candies, FOB destination, terms 2/10, n/30. Fish Creek pays the freight costs of $400 on July 11. Fish Creek Candies uses a perpetual inventory system. Damaged goods totaling $450 are returned to Fish Creek for credit on July 12. The fair value of these goods is $300. Fish Creek grants an additional allowance of $100 for goods with damaged packaging that Uncle Charlie's agrees to keep. On July 19, Uncle Charlie's pays Fish Creek in full, less the discount.
Prepare entries for Fish Creek Candies required on July 12 and July 19.

On July 10, Uncle Charlie's Purchased $6,000 of Candy from Fish