Based on the information below, illustrate the effects on the accounts statements of the Seller and the Buyer. Both use a perpetual inventon2/0 and financial a Seller sells Buyer on account merchandise costing l inven n30, FOB destination. The Buyer returns as defective $10 The seller's cost is $60 Buyer pays within the discount period. for S300, terms 2 b. tation charge is $50 worth of the $500 merchandise received. c. a) Seller 27. Assets - Liabilities Cash | Accounts | Merchandise | Accounts | Capital | Retained Receivable Inventory Income Statement (a) Buver Liabilities + Stockholders' Equity Assets Cash ReceivableI Accounts Merchandise Accounts CapitalRetained Earnings Payable (b) Seller + Stockholders -Liabilities Assets uity Accounts Merchandise AccountsCapital Retained Receivable Inventory Farnings Statement of Cash Flows N? MA b) Buyer Liabilities + Stockholders' Assets Accounts MerchandiseAccountsCapitalRetained Cash Receivable Pavable Stock Ea Inventory