ABC company is a distributor of watches and usually gives 3 /10, n/ 30 payment terms to all of

its customers. At the end of January ABC company had inventory worth12000 taka. During the

month of January the following merchandising transactions occurred.

1. Purchased watches on account for 18000 taka from Fastrack manufacturers FOB

destination, terms 2/10, n/30. The appropriate party also made a cash payment of of

100 taka for freight on this date

2. Sold watches on account to SS Corporation for 4000 taka the cost of watches sold is

2200 taka.

3. Approved purchase allowance of 1000 tk for defective products from Fasttrack

4. Paid Fast Track manufacturers in full.

5. Received payments in full from SS Corporation.

6. Sold watches on account for 4800 taka to G Corporation. The cost of the watches sold

was 2018 taka.

7. Purchased watches on account for 1900 Taka from HM manufacturers, FOB shipping

point terms 1/10, n/30. The appropriate party also made a cash payment of 125 taka for

freight on this date.

8. Received 300 Taka credit for watches returned to H manufacturers.

9. Receive payments in full from the G Corporation.

10. Paid HM manufacturers in full.