Based on the information below, illustrate the effect on the accounts of seller and the buyer.

(a) Seller sells buyer on account merchandise costing $300 for $500, terms 2/10, net 30, fob destination. The transportation charge is $50 charge to buyer.

(B) buyer returns as defective $100 worth of the $500 merchandise received. The seller cost is $60.

(c) Buyers pays within the discount period.

IV. Framework (17 points) Based on the information below, illustrate the effects on the accounts of the Seller and the Buyer. a) Seller sells Buyer on account merchandis costing $300 for $500, terms 2/10, net 30, FOB (c) Buyer pays within the discount period. (a) Seller destination. The transportation charge is $50 charge to buyer uyer returns as defective S100 worth of the $500 merchandise received. The seller's cost is s6o. + Stockholders' Equity Retained Assets Liabilities Accounts MerchandiseAccounts Capital Stock Cash Earnings Receivable Payable (a) Buver Liabilities Accounts Merchandise Accounts Payable + Stockholders' Equity Retained Earnings Assets Capital Stock Cash Receivable Inventory (b) Seller -Stockholders,Equity Retained Earnings Assets - Liabilities CashA Accounts Merchandise Accounts InventoryPavable Capital Stock Receivable b) Buyer Assets Accounts Merchandise Receivable Inventory Liablities Stackholders' Equity Accounts Capital Stock Retained Earnings Cash (c) Seller Liabilities Accounts Merchandise Accounts Receivable Inventory Payable Assets + Stockholders' Equity Capital Retained Earnings Cash Stock (c) Buyer Liabilities Accounts Merchandise Accounts Payable + Stockholders' Equity Retained Earnings Assets Capital Stock Cash ReceivableInventory