On June 10, Cavalier Company purchased $8,000 of merchandise from Wahoo Company, FOB shipping point,...
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Accounting
On June 10, Cavalier Company purchased $8,000 of merchandise from Wahoo Company, FOB shipping point, terms 3/10, n/30. The merchandise purchased by Cavalier cost Wahoo $4,800. Cavalier pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Wahoo for credit on June 12. The fair value of these goods is $70. On June 19, Cavalier pays Wahoo Company in full, less the purchase discount. Both companies use a perpetual inventory system.
The journal entry that Wahoo prepares on June 19 includes which of the following? Select all that apply.
Group of answer choices
Credit to Cash for $7,469
Debit to Cash for $7,700
Credit to Sales Discounts for $231
Debit to Inventory $300
Credit to Accounts Receivable for $8,000
Credit to Accounts Receivable for $7,700
Debit to Sales Discounts for $7,700
Debit to Cash for $7,469
Debit to Sales Discounts for $231
Debit to Sales Returns and Allowances for $300
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