Sales-related transactions Obj. 2 The debits and credits for five related transactions, (1) through (5), are presented in the following T accounts. Assume the credit terms were 2/10, n/30.

Cash Sales

(5) 10,290 (1) 11,760 Accounts Receivable Cost of Goods Sold

(1) 11,760 (3) 1,470 (2) 7,000

(5) 10,290 Inventory

(4) 900 (2) 7,000 Estimated Returns Inventory

(4) 900 Customer Refunds Payable

(3) 1,470

a. Describe each transaction.

b. What was the invoice amount of the merchandise that was returned?

AppendixLO1