On, June 10, Whispering Winds Company purchased $7,400 of merchandise on account from Swifty Co., FOB shipping point, terms 2/10,n/30. Whispering Winds pays freight cost of $540 on June 11. Good totaling $700 are returned by Swifty for credit on June 12. On June 19, Whispering Winds pay Swifty Co. in full, less the discount. Both companies use a perpetual inventory system.

Prepare separate entries for each transaction on the books for the Whispering Winds Co.

Separate entries for Swifty Co. The merchandise purchased by Whispering Winds Co. on June 10 cost Swifty $4,800, and the goods returned cost Swifty $270