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 credit terms were 1/10, n/30. Cash (2) (4) Inventory Feedback 13,860 (3) 150 (1) (2) 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). 150 11,880 (3) 1,980 Accounts Payable 1,980 11,880 ✓ (1) 13,860 Check My Work Find the debit and credit(s) for each transaction and then consider the cause of each. Keep in mind that these are the records of a purchaser.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 ship
credit terms were 1/10, n/30.
(2)
(4)
Inventory
(3)
Feedback
Cash
13,860
150
150
(1)
(2)
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.
11,880
1,980
(3)
(4)
✓
✓
b. Determine the invoice amount of the merchandise that was returned in (3).
X
4
Accounts Payable
1,980 (1)
11,880
✓
13,860
Check My Work
Find the debit and credit(s) for each transaction and then consider the cause of each. Keep in mind that these are the records of a purchaser.
Transcribed Image Text: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 ship credit terms were 1/10, n/30. (2) (4) Inventory (3) Feedback Cash 13,860 150 150 (1) (2) 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. 11,880 1,980 (3) (4) ✓ ✓ b. Determine the invoice amount of the merchandise that was returned in (3). X 4 Accounts Payable 1,980 (1) 11,880 ✓ 13,860 Check My Work Find the debit and credit(s) for each transaction and then consider the cause of each. Keep in mind that these are the records of a purchaser.
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