Illustrate the effects on the accounts and financial statements of the following related transactions of Westcoast Diagnostic

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Illustrate the effects on the accounts and financial statements of the following related transactions of Westcoast Diagnostic Company:
a. Purchased $25,000 of merchandise from Presidio Co. on account, terms 2/10, n/30.
b. Paid the amount owed on the invoice within the discount period.
c. Discovered that $5,000 of the merchandise was defective and returned items receiving credit.
d. Purchased $4,000 of merchandise from Presidio 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).

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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