A company engaged in the following transaction during October of 2019.

Record the events using the horizontal statement model provided below.

October 2 Purchased inventory from the Company costing $10,000 on account. The terms of the purchase were 1/10, n/30. October 3 The merchandise was delivered FOB destination. Freight costs were $110. October 5 Returned $1,000 of the inventory to the Company because it not what was ordered. October 10 Paid the amount due to the company. October 15 Sold inventory that had cost $5,000 for $10,000 on account to Kent, Corp, under terms 2/10, n/45. October 16 Delivered goods FOB destination sold on October 15. Freight costs of $60 were paid in cash. October 19 Received returned merchandise from Kent, Corp. The cost of the returned merchandise was $1,000 and was sold for $2,000. October 25 Collected the amount due on the account receivable from Kent Corp.

Balance Sheet

Income statement

Assets

=

Liab.

+

stkholders' equity

Rev.

-

Exp.

Net Inc.

Date

Cash

+

A. Rec.

+

Mdse. Inv.

=

A. pay

+

C. stk.

+

ret. Earn

10/2

10/3

10/5

10/10

10/10

10/15

10/15

10/16

10/19

10/19

10/25

10/25