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Journalize these transactions, first on the books of Arnold Drug Stores and second on the books of Gerson Pharmaceuticals. Assume both companies use the periodic inventory system.
The following transactions occurred between Gerson Pharmaceuticals and Arnold Drug Stores during June of the current year.
June 6. Arnold purchased $29,400 of merchandise from Gerson on credit terms 2/10, n/30, FOB shipping point. Seperatel, Arnold paid freight in of $300. Gerson invoiced Arnold for $29,400
June 10. Arnold returned $3,600 of the merchandise purchased on June 6. Gerson issued a credit memo for this account.
June 15. Arnold paid $12,000 of invoice amount owed to Gerson for the June 6 purchase. This payment included none of the freight charge.
June 27. Arnold paid the remaining amount owed to Gerson for the June 6 purchase.
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