I only need the answers for the bubbles circled (3).

Edit: I've been getting comments on the blurred images so I will just type out the portions I need.

Exercise One:

1. S & V purchased $500 worth of merchandise for cash. There were no shipping costs, 2. purchased $4000 of merchandise on account; Terms n/30. FOB Shipping Point (buyer pays). S&V separately paid cash to the freight company- $45.

3. Recognized revenue of $500 on the cash sale of merchandise. The cost of the merchandise sold was $280. The merchandise was shipped FOB Destination (seller pays) and S&V paid $65 in shipping costs.

4. paid for the merchandise purchased #2.

5, Recognized revenue of $1200 on the sale of merchandise to a customer who paid cash. The cost of the merchandise sold was $950. There were no shipping costs.

6. S&V purchased $2000 on the sale of merchandise from its supplier on account; terms 3/15, n/45. There were no shipping costs.

7. Recognized revenue of $2000 on the sale of merchandise on account. The terms of the sale are 2/10, n/30. The cost of the merchandise sold was $1600. No shipping costs.

8. Accepted a return of merchandise with a list price of $50 from the cash customer in #3. The cost of the merchandise returned was $30. The customer received a cash refund for the $50.

9. S&V returned $100 worth of the merchandise purchased in #6.

10. Applied the discount from the credit customer in #7.

11. Received payment from the customer in #7 net of the discount.

12. Applied the discount for the merchandise purchased in #6. Don't forget to deduct the amount returned in #9 before calculating the discount.

13. S&V paid for the merchandise purchased in #6 less the amount returned in #9 and the discount.

- These questions need to be filed into the T-charts under the picture provided

Each T-chart is for "Cash, Accounts Receivable, Inventory, Accounts Payable, Sales Revenue, Cost of Goods Sold, Transportation Out Expense."

Cost of Goods Traportation