Marks are indicated separately for each question in this section. There are $22$ marks in total.

Toons Wholesale has the following transactions during the month of August $2021$:

Aug. $1$ Purchased inventory from Bugs Inc. for $$14,000,$ FOB destination,

terms $1/10$ n$/30.$

Aug. $2$ The appropriate company paid $$100$ freight on the August $1$ purchase.

Aug. $6$ Returned $$4,000$ worth of goods to Bugs as they were the wrong size.

Aug. $7$ Sold half of the remaining inventory purchased from Bugs to Daffy Inc.

for $$7,500,$ FOB destination, terms $2/20$ n$/30.$

Aug. $8$ The appropriate company paid $$120$ freight on the August $7$ sale.

Aug. $10$ Paid Bugs the entire amount owed to him.

Aug. $12$ Purchased inventory worth $$8,000$ from Elmer Inc., FOB shipping point,

terms $3/15$ n$/45.$

Aug. $13$ The appropriate company paid $$150$ freight on the August $12$ purchase.

Aug. $17$ Sold half of the inventory purchased from Elmer to Porky Ltd$.$ for $$6,000,$

FOB shipping point, terms $3/10$ n$/20.$

Aug. $18$ The appropriate company paid $$80$ freight on the August $17$ sale.

Aug. $22$ Porky returned $$1,500$ worth of the goods bought on August $17$

as you shipped the wrong colour.

Aug. $25$ Porky paid their outstanding balance.

Aug. $30$ Daffy paid their outstanding balance.

Aug. $31$ Paid Elmer the entire amount owed to him.

REQUIRED $-$

Use the expanded accounting equation to answer the following questions.

How would Toons Wholesale record the August $1$ transaction?

a$.$ Increase both Accounts Payable and Inventory

b$.$ Increase both Purchases and Inventory

c$.$ Increase both Accounts Payable and Inventory Expense

d$.$ Increase both Purchases and Inventory Expense

e$.$ Increase both Accounts Payable and Purchases

Enter the letter that corresponds to your choice. $($A B C D E$)$

How would Toons Wholesale record the August $2$ transaction?

a$.$ Increase both Inventory and Accounts Payable

b$.$ Increase Freight Expense and decrease Cash

c$.$ Increase both Freight Expense and Accounts Payable

d$.$ Increase both Inventory and Freight Expense

e$.$ No entry is required.

Enter the letter that corresponds to your choice. $($A B C D E$)$

How would Toons Wholesale record the August $6$ transaction?

a$.$ Decrease both Purchases and Inventory Expense

b$.$ Decrease Inventory and increase Purchase Returns

c$.$ Decrease both Accounts Payable and Inventory

d$.$ Decrease both Accounts Payable and Inventory Expense

e$.$ Decrease Accounts Payable and increase Purchase Returns

Enter the letter that corresponds to your choice. $($A B C D E$)$

How would Toons Wholesale record the August $7$ transaction?

a$.$ Increase Sales and Accounts Receivable $$5,000$ each, and increase Cost of Goods Sold and decrease Inventory $$7,500$ each

b$.$ Increase Sales and Accounts Receivable $$7,500$ each, and increase Cost of Goods Sold and decrease Inventory $$7,500$ each

c$.$ Increase Sales and Accounts Receivable $$7,500$ each

d$.$ Increase Sales and Accounts Receivable $$7,500$ each, and increase Cost of Goods Sold and decrease Inventory $$5,000$ each

e$.$ Increase Cost of Goods Sold and decrease Inventory $$5,000$ each

Enter the letter that corresponds to your choice. $($A B C D E$)$

How would Toons Wholesale record the August $8$ transaction?

a$.$ Increase both Accounts Payable and Freight Expense

b$.$ Decrease Cash and increase Freight Expense

c$.$ Decrease both Cash and Inventory

d$.$ Decrease both Cash and Inventory

e$.$ No entry is required

Enter the letter that corresponds to your choice. $($A B C D E$)$

How would Toons Wholesale record the August $10$ transaction?

a$.$ Decrease Cash, Inventory, and Accounts Payable.

b$.$ Decrease Cash and Accounts Payable, and increase Inventory.

c$.$ Decrease Cash and Inventory, and increase Accounts Payable.

d$.$ Decrease Cash and increase both Inventory and Accounts Payable.

e$.$ Decrease Cash and Accounts Payable only.

Enter the letter that corresponds to your choice. $($A B C D E$)$

How much does Toons Wholesale pay Bugs on August $10?$

How would Toons Wholesale record the August $12$ transaction?

a$.$ Increase both Purchases and Inventory Expense

b$.$ Increase both Accounts Payable and Purchases

c$.$ Increase both Purchases and Inventory

d$.$ Increase both Accounts Payable and Inventory

e$.$ Increase both Accounts Payable and Inventory Expense

Enter the letter that corresponds to your choice. $($A B C D E$)$