Illustrate the effects on the accounts and financial statements of the following related transactions of Bowen Inc.
a. Purchased $400,000 of merchandise from Swanson Co. on account, terms 1/10, n/30.
b. Paid the amount owed on the invoice within the discount period.
c. Discovered that $60,000 of the merchandise was defective and returned items, receiving credit.
d. Purchased $35,000 of merchandise from Swanson Co. on account, terms 1/10, n/30.
e. Received a check from Swanson Co. for the balance owed from the return in (c), after deducting for the purchase in (d).