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Concept explainers
Purchase-related transactions
The following selected transactions were completed by Epic Co. during August of the curr ent year:
Aug. 3. Purchased merchandise on account for $33400, terms FOB destination. 2/10. n/30.
9. Issued debit memorandum for $2500 ($2450 net of 2% 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/com. 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 invoice of August 10.
Instructions
Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date.
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Survey of Accounting (Accounting I)
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