Sept.1Acquired $50,000 cash from the issue of common stock. 1Purchased $28,000 of merchandise on account with terms 2/10, n/30. 5Paid $600 cash for freight to obtain merchandise purchased on September 1. 8Sold merchandise that cost $15,000 to customers for $31,000 on account, with terms 2/10, n/30. 8Returned $600 of defective merchandise from the September 1 purchase to the supplier. 10Paid cash for the balance due on the merchandise purchased on September 1. 20Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period. 30Paid $2,450 cash for selling expenses.Given this information what is the...1. outflow for inventory 2. & How does event Sept 10. affect the balance sheet

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Answered: Sept. 1 Acquired $50,000 cash from the…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.1P: Purchase-related transactions The following selected transactions were completed by Epic Co. during...

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Sept.	1	Acquired $50,000 cash from the issue of common stock.
	1	Purchased $28,000 of merchandise on account with terms 2/10, n/30.
	5	Paid $600 cash for freight to obtain merchandise purchased on September 1.
	8	Sold merchandise that cost $15,000 to customers for $31,000 on account, with terms 2/10, n/30.
	8	Returned $600 of defective merchandise from the September 1 purchase to the supplier.
	10	Paid cash for the balance due on the merchandise purchased on September 1.
	20	Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period.
	30	Paid $2,450 cash for selling expenses.

Given this information what is the...

1. outflow for inventory

2. & How does event Sept 10. affect the balance sheet

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