Exercise $3-6$A $($Algo$)$ Purchase discounts and purchase returns LO $3-2,3-3$

On April $6,$ Home Furnishings purchased $$40,000$ of merchandise from Una's Imports, terms $\frac{2}{10},\frac{n}{45}.$ On April $8,$ Home Furnishings

returned $$8,400$ of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April $15.$

Required:

a$.$ What is the amount that Home Furnishings must pay Una's Imports on April $15?$

b$.$ Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of

cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify

the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$

c$.$ How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April $20?$

d$.$ Record the payment for the merchandise in Requirement $($c$)$ in the horizontal financial statements model. Also, in the Statement of

Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$

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the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$

Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.