Illustrate the effects on the accounts and financial statements of the following related transactions of Seaside Diagnostic Company:

a) Purchased $48,000 of merchandise from Davis Co. on account, terms 2/10, n/30.

b) Paid the amount owed on the invoice within the discount period.

c) Discovered that $10,000 of the merchandise was defective and returned items, receiving credit.

d) Purchased $7,500 of merchandise from Davis Co. on account, terms n/30.

e) Received a check for the balance owed from the return in "c" after deducting for the purchase in "d".