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Question - On June 10, Cullumber Company purchased $9,500 of merchandise on account from Bramble Company, FOB shipping point, terms 2/10, n/30. Cullumber pays the freight costs of $490 on June 11. Damaged goods totaling $450 are returned to Bramble for credit on June 12. The fair value of these goods is $80. On June 19, Cullumber pays Bramble Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Prepare separate entries for each transaction for Bramble Company. The merchandise purchased by Cullumber on June 10 had cost Bramble $5,000.
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