Chapter 5 - Practice Problems (Purchase of Inventory & Prepaid Freight) Problem #3: [Prepaid Freight] April 1, ABC Company purchased merchandise from Pink Company, $10,850, terms FOB Shipping Point, 2/10, n/eom. Prepaid freight of $200 was added to the invoice. Date Accounts Dr Cr Inventory Price Less discount Net Inventory Price Freight Inventory/Accounts Payable April 11, the company paid the amount due within the discount period. Date Accounts Dr Cr Chapter 5 - Practice Problems (Sale of Inventory) Problem #4 (Sale of inventory on credit, receipt of cash & return) Nov 4, sold merchandise on account, $6,200. The cost of the merchandise sold was $4,900. The invoice terms were 2/10, n/30. Date Accounts Dr Cr Nov 14, received full payment from customer. Date Accounts Dr Cr Dec 2, paid customer a cash refund of $1,050 for returned merchandise from the Nov 1 sale. The cost of the merchandise returned was $890. Date Accounts Dr Cr