$1.$ KDS was started when it issued common stock for $$85,000$ cash.

$2.$ KDS purchased land for cash for $$8,000.$

$3.$ KDS purchased on account inventory with a list price of $$50,000.$ Payment terms were $2/10,$ n$/30.$ KDS records inventory transactions at the gross amount.

$4.$ The transportation terms for the merchandise delivered in event No$.3$ were FOB shipping point. KDS paid the transportation cost of $$1,200$ in cash.

$5.$ An inspection revealed that merchandise with a purchase price of $$4,600$ from event No$.3$ was defective. KDS returned this merchandise to its supplier for credit.

$6.$ a$.$ KDS recognizes the discount for $$30,000$ of the inventory purchased in event No$.3.$

b$.$ KDS paid this portion of accounts payable.

$7.$ a$.$ KDS sold inventory to various retail store customers on account. KDS offers customers payment terms of $1/15,$ n$/30.$ The list price for the sales was $$74,000.$

b$.$ Recognized the cost of the inventory sold was $$44,100.$

$8.$ a$.$ Customers returned some goods KDS had sold in event No$.7.$ The goods had been sold for a list price of $$5,000.$ The items are not defective and can be sold as is$.$

b$.$ These goods had a cost of $$3,160.$

$9.$ KDS paid in cash transportation cost of $$1,500$ for goods delivered to customers FOB destination.

$10.$ a$.$ Receivables recorded at a gross price of $$60,000$ were paid within the $15-$day discount period. KDS recognized the sales discount.

b$.$ KDS collected cash from these customers.

$11.$ KDS paid $$12,600$ in cash for other operating expenses.

$12.$ KDS sold the land from transaction $2$ for $$10,000.$

$13.$ KDS paid dividends of $$5,000$ for the year.