Illustrate the effects on the accounts and financial statements of the following related transactions of Bigsur Inc.

a. Purchased $200,000 of merchandise from Central Coast Co. on account, terms 1/10, n/30.

b. Paid the amount owed on the invoice within the discount period.

c. Discovered that $30,000 of the merchandise was defective and returned items, receiving credit.

d. Purchased $17,500 of merchandise from Central Coast Co. on account, terms 1/10, n/30.

e. Received a check from Central Coast Co. for the balance owed from the return in (c), after deducting for the purchase in (d).