Purchase-Related Transactions The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30. Cash   Accounts Payable       (2) 150   (3) 1,980    (1) 13,860         (4) 11,880   (4) 11,880      Inventory   (1) 13,860    (3) 1,980     (2) 150         a. Describe each transaction. 1.      2.      3.      4.      b. Determine the invoice amount of the merchandise that was returned in (3). $fill in the blank 5

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Purchase-Related Transactions

The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30.

Cash   Accounts Payable
      (2) 150   (3) 1,980    (1) 13,860  
      (4) 11,880   (4) 11,880     
Inventory  
(1) 13,860    (3) 1,980    
(2) 150        

a. Describe each transaction.

1.   
 
2.   
 
3.   
 
4.   
 

b. Determine the invoice amount of the merchandise that was returned in (3).
$fill in the blank 5

Purchase-Related Transactions
The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the
freight terms were FOB shipping point and that the credit terms were 1/10, n/30.
Cash
Accounts Payable
(2)
150
(3)
1,980
(1)
13,860
(4)
11,880
(4)
11,880
Inventory
(1)
13,860
(3)
1,980
(2)
150
a. Describe each transaction.
1.
Purchased merchandise on account net of discount.
2. Paid freight.
3. An allowance for return of merchandise was granted by the creditor.
4. Paid the balance due within the discount period.
b. Determine the invoice amount of the merchandise that was returned in (3).
$4
1,386 x
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Transcribed Image Text:Purchase-Related Transactions The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30. Cash Accounts Payable (2) 150 (3) 1,980 (1) 13,860 (4) 11,880 (4) 11,880 Inventory (1) 13,860 (3) 1,980 (2) 150 a. Describe each transaction. 1. Purchased merchandise on account net of discount. 2. Paid freight. 3. An allowance for return of merchandise was granted by the creditor. 4. Paid the balance due within the discount period. b. Determine the invoice amount of the merchandise that was returned in (3). $4 1,386 x Feedback V Check My Work
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