Exercise 3-10 Cash discounts and purchase returns LO 3-3 On April 6, 2014, Fashion Furnishings purchased $40,000 of merchandise from James' Imports, terms 2/10, n/45. On April 8, Fashion returned $8,400 of the merchandise to James lmports for credit. Fashion paid cash for the merchandise on April 15, 2014 Required What is the amount that Fashion must pay James' Imports on April 15? amont b. Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign) FASHION FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Liabilities Stockholders' Equity Assets Events Revenue Expenses Merchandise Accounts Common, Retained Payable Earnings Purchase inventory Return inventory Paid accounts payable of Cash