On June 10, Pronghorn Company purchased $7,650 of merchandise on account from Pina Colada Company, FOB shipping point, terms 2/10, n/30. Pronghorn pays the freight costs of $580 on June 11. Goods totaling $650 are returned to Pina Colada for credit on June 12. On June 19, Pronghorn pays Pina Colada Company in full, less the discount. Both companies use a perpetual inventory system.
(a) Prepare separate entries for each transaction on the books of Pronghorn Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)