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1. Buyer: Purchase of $3,250 of inventory for cash. 2. Buyer: Return of $705 of inventory to seller for credit on account. 3. Buyer:
1. Buyer: Purchase of $3,250 of inventory for cash. 2. Buyer: Return of $705 of inventory to seller for credit on account. 3. Buyer: Purchase of $3,760 of inventory on account, terms 2/10, n/45. 4. Buyer: Payment of $390 cash for freight on purchase of inventory (FOB shipping point). 5. Buyer: Payment of amount owed for purchase of $3,250 of inventory, terms 2/10, n/30, paid within discount period. 6. Seller: Sale of inventory on account, terms n/30. Selling price $9,400; cost $3,760. Management expects a return rate of 7.50%. 7. Seller: Return of damaged inventory from buyer for cash. Selling price $510; cost $211. All these goods were discarded because they are not resaleable. 8. Seller: Payment of $550 cash for freight on sale of inventory (FOB destination). 9. Seller: Return of unwanted inventory from buyer for credit on account. Selling price $390; cost $149. Goods restored to inventory for future resale. 10. Seller: Receipt of payment ($7,520) from customer on account, terms n/30. For each of the above transactions, indicate (a) the basic type (asset, liability, revenue, or expense) of each account to be debited and credited; (b) the specific name(s) of the account(s) to debit and credit (for example, Inventory); and (c) whether each account is increased (+) or decreased (-) and by what amount. The first one has been done for you as an example. (Enter specific debited account items in alphabetical order. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Account Debited (b) (a) Item Basic Type of Account Specific Account 1. Asset Inventory 2. (c) Amount (a) Account Credited (b) Basic Type of Account Specific Account $3,250 Asset Cash $ $ (c) Amount -$3,250 3. 4. 5. $ $ $ 6. $ $ $ 7. $ $ $ $ Cash $ Inventory $ $ $ $ $ $ 8. $ $ 9. $ $ $ $ 10. $ $ SUPPO
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