3. The following transactions were completed between Seller Company and Buyer Company during the month of October. a. October 8: Seller sold merchandise on account to Buyer, $15,000 (terms FOB destination, 2/10, n/30). The cost to Seller of the merchandise sold was $10,000. Seller paid shipping costs of $400. b. October 12: Buyer returned merchandise with a selling price of $5,000 ($4,900 net of discount). The original cost of the merchandise to Seller was $3,000. c. October 17: Buyer paid Seller the amount owed from the October 8 sale. d. October 24: Seller sold merchandise on account to Buyer, $15,000 (terms FOB shipping point, 1/10, n/30). The cost to Seller of the merchandise sold was $9,000. Shipping costs of $500 were paid by Buyer. On the attached worksheet, indicate the effect of these transactions on the financial statements of both Seller and Buyer. Question 3 Est. Returned Accts. Rec. Inventory Inventory Customer Refunds Retained Accts Pay. Payable Earnings Seller Co. Cash a. b. C. d. Est. Returned Accts. Rec. Inventory Inventory Customer Refunds Retained Accts. Pay. Payable Earnings Buyer Co. Cash a. b. C. d