Chapter 5 Homework eBook Purchase Discounts ? The following are transactions of Buckeye Corporation. Identify and analyze each of the following transactions of Buckeye Corporation. All purchases on credit are made with terms of 1/10, n/30, and Buckeye uses the periodic system of inventory.) July 3: Purchased merchandise on credit from Wildcat Corp. for $3,500. Activity Operating Account Payable Increase, Purchases Increase Statement(s) Balance Sheet and Income Statement Accounts Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "o". If the effect is negative, use the minus sign. Balance Sheet Income Statement Net Stockholders' Equity Assets Revenues Expenses Liabilities Accounts Payable Income -3,500 X No Entry 2,300 x No Entry Purchases 2.300 2,300 x Feedback July 12: Paid amount owed to Wildcat Corp. Activity Accounts Operating Cash Decrease, Account Payable Decrease Balance Sheet only Statement(s) Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry and leave the amount box blank or enter "O". If the effect is negative, use the minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Cash -3,465 Accounts Payable 3,500 x -35 x Purchase Discounts X -35 x Purchase Discounts X -35 x 35 x Feedback Feedback