On April 6, Home Furnishings purchased $25,200 of merchandise from Unas Imports, terms 2/10, n/45. On April

Question:

On April 6, Home Furnishings purchased $25,200 of merchandise from Una’s Imports, terms 2/10, n/45. On April 8, Home Furnishings returned $2,400 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. Record the events in a horizontal statements model like the following one.

Balance Sheet Income Statement Statement of Assets Llab. Stk. Equity Cash Flows Cash Inv. Accts. Pay. + C. Stock. + Ret. Earn. Rev. Еxp. Net Inc.


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

d. Record the payment in event (c) in a horizontal statements model like the previous one.

e. Why would Home Furnishings want to pay for the merchandise by April 15?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Survey Of Accounting

ISBN: 9781260575293

6th Edition

Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds

Question Posted: