The following selected transactions were completed by Epic Co, during August of the cur- rent year: Aug. 3. Purchased merchandise on account for $33,400, terms FOB destination, 2/10, n/30. 9. Issued debit memorandum for $2,500 (S2,450 net of % discount) for merchandise from the August 3 purchase that was damaged in shipment 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/eom. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9. 31. Paid for imoice of Auguast 10. Instructions Illustrate the effects of cach of the preceding transactions on the accounts and financial statements of Epic Co. Identify cach transaction by date.

The following selected transactions were completed by Epic Co, during August of the cur- rent year: Aug. 3. Purchased merchandise on account for $33,400, terms FOB destination, 2/10, n/30. 9. Issued debit memorandum for $2,500 (S2,450 net of % discount) for merchandise from the August 3 purchase that was damaged in shipment 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/eom. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9. 31. Paid for imoice of Auguast 10. Instructions Illustrate the effects of cach of the preceding transactions on the accounts and financial statements of Epic Co. Identify cach transaction by date.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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