$10$Presented here are selected transactions for Niska Inc. during August of the current year. Niska uses a perpetual inventory system. It estimates a return rate of $12\%,$ based on past experience.Aug. $1$ Purchased supplies for $$2,500$ cash$\mathrm{.}3$Purchased inventory on account from Kenliwa Corp. at a cost of $$35,000,$ terms $2/20,$ n$/45,$ FOB shipping point$\mathrm{.}47$Freight charges of $$1,200$ were paid by the appropriate party on the August $3$ inventory purchase.Sold goods costing $$10,000$ to Penkwa Limited for $$25,000$ on account, terms n$/30,$ FOB destination.Freight charges of $$500$ were paid by the appropriate party on the August $6$ sale of inventory.Returned damaged goods costing $$3,000$ that were originally purchased from Kenliwa on September $3.$ Received a credit on account$\mathrm{.}10$Purchased equipment on account for $$45,000,$ terms n$/45,$ FOB destination$\mathrm{.}11$ Freight charges of $$650$ were paid by the appropriate party on the August $10$ purchase of equipment$\mathrm{.}13$Purchased inventory for $$3,000$ cash$\mathrm{.}15$Received the balance due from Penkwa$\mathrm{.}22$Paid Kenliwa the balance due$\mathrm{.}26$Sold inventory costing $$15,000$ to Makoons Inc. for $$30,000$ on account, terms n$/45,$ FOB shipping point$\mathrm{.}27$Freight charges of $$750$ were paid by the appropriate party on the August $26$ sale of inventory.

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Aug 1 Debit Supplies 2500 Credit Cash 2500 Aug 3 Debit Inventory 35000 Cr... View the full answer