EX 5/4

Locust Company purchased merchandise on account from a suppne 1/10, n/30. Locust Company returned $6,400 of the merchandise and received full credit. pays the invoie within the discount period, what is the amoune EX 5-3 Purchase-related transactions a. If Locust Company pays th of cash required for the payment? b. Und er a perpetual inventory system, what account is credited by Locust Company to record the return? OBJ. 2 EX 5-4 Purchase-related transactions A retailer is considering the purchase of 250 units of a specific item from either of two suppliers. Their offers are as follows: Supplier One: $400 a unit, total of $100,000, 1/10, n/30, no charge for freight. Supplier Two: $399 a unit, total of $99,750, 2/10, n/30, plus freight of $975. Which of the two offers, Supplier One or Supplier Two, yields the lower price? EX 5-5 Purchase-related transactions OBJ. 2 The debits and credits from four related transactions are presented in the accounts. Describe each transaction. following T Cash Accounts Payable 300 16,830 4,000 (1) 17,000 21,000 Merchandise Inventory 21,000 (3) 300 () 4,000 170