Purchase-Related Transactions The debits and credits from four related transactions, (1) through (4), are presented in...

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Purchase-Related Transactions The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30. (1) (2) Cash (2) Accounts Payable 150 (3) 1,980 (1) 13,860 (4) 11,880 (4) 11,880 Inventory 13,860 (3) 1,980 150 a. Describe each transaction. 1. Purchased merchandise on account net of discount. 2. Paid freight. 3. An allowance for return of merchandise was granted by the creditor. 4. Paid the balance due within the discount period. b. Determine the invoice amount of the merchandise that was returned in (3). x Purchase-Related Transactions The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30. (1) (2) Cash (2) Accounts Payable 150 (3) 1,980 (1) 13,860 (4) 11,880 (4) 11,880 Inventory 13,860 (3) 1,980 150 a. Describe each transaction. 1. Purchased merchandise on account net of discount. 2. Paid freight. 3. An allowance for return of merchandise was granted by the creditor. 4. Paid the balance due within the discount period. b. Determine the invoice amount of the merchandise that was returned in (3). x