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Three transactions for Crane Gifts are presented here. On October 2, Crane Gifts purchased $40,000 of merchandise from Sea Toys, terms 1/10, n/30. On October 6, Crane Gifts returned $2,000 of the merchandise purchased on October 2. On October 12, Crane Gifts paid the balance due to Sea Toys. a. How much cash is paid by Crane Gifts on October 12? Cash Payment $ b. Post the transactions to the T-accounts. (Post entries in the order displayed in the problem statement.) Oct. 2 Oct. 12 Oct. 2 4 Accounts Payable 40000 40000 Oct. 2: Inventory 40000 Oct. 6 Oct 12

Three transactions for Crane Gifts are presented here. On October 2, Crane Gifts purchased $40,000 of merchandise from Sea Toys, terms 1/10, n/30. On October 6, Crane Gifts returned $2,000 of the merchandise purchased on October 2. On October 12, Crane Gifts paid the balance due to Sea Toys. a. How much cash is paid by Crane Gifts on October 12? Cash Payment $ b. Post the transactions to the T-accounts. (Post entries in the order displayed in the problem statement.) Oct. 2 Oct. 12 Oct. 2 4 Accounts Payable 40000 40000 Oct. 2: Inventory 40000 Oct. 6 Oct 12

FINANCIAL ACCOUNTING
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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Three transactions for Crane Gifts are presented here. On October 2, Crane Gifts purchased $40,000 of merchandise from Sea Toys, terms 1/10, n/30. On October 6, Crane Gifts returned $2,000 of the merchandise purchased on October 2. On October 12, Crane Gifts paid the balance due to Sea Toys. a. How much cash is paid by Crane Gifts on October 12? Cash Payment $ b. Post the transactions to the T-accounts. (Post entries in the order displayed in the problem statement.) Oct. 2 Oct. 12 Oct. 2 4 Accounts Payable 40000 40000 Oct. 2: Inventory 40000 Oct. 6 Oct 12
Transcribed Image Text:Three transactions for Crane Gifts are presented here. On October 2, Crane Gifts purchased $40,000 of merchandise from Sea Toys, terms 1/10, n/30. On October 6, Crane Gifts returned $2,000 of the merchandise purchased on October 2. On October 12, Crane Gifts paid the balance due to Sea Toys. a. How much cash is paid by Crane Gifts on October 12? Cash Payment $ b. Post the transactions to the T-accounts. (Post entries in the order displayed in the problem statement.) Oct. 2 Oct. 12 Oct. 2 4 Accounts Payable 40000 40000 Oct. 2: Inventory 40000 Oct. 6 Oct 12
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