cash th cash and financial ent of ows Exp. c. How much must Home pay for the merchandise purchased if the payment is not made until April 20, Year 1? d. Show the payment in Requirement c in a horizontal financial statements model like the previous one. e. Why would Home want to pay for the merchandise by April 15? Net Inc. Exercise 4-6A Understanding the freight terms FOB shipping point and FOB destination Required LO 4-4 For each of the following events, indicate whether the freight terms are FOB destination or FOB shipping point. a. Sold merchandise and the buyer paid the transportation costs. b. Purchased merchandise and the seller paid the transportation costs. c. Sold merchandise and paid the transportation costs. d. Purchased merchandise and paid the transportation costs. Exercise 4-7A Determining the cost of inventory Required For each of the following cases determine the ending balance in the inventory account. (Hint: First, determine the total cost of inventory available for sale. Next, subtract the cost of the inventory sold to arrive at the ending balance) LO 4-2, 4-3,