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Impact on income (decrease) to income Aug. 1) Purchased merchandise from Taylor Company for $12.900 under credit terms of 1/10, 1/30, FOB destination invoice dated
Impact on income (decrease) to income Aug. 1) Purchased merchandise from Taylor Company for $12.900 under credit terms of 1/10, 1/30, FOB destination invoice dated August 1 Aug. 5) Sold merchandise to Knight Corp. for $7.900 under credit terms of 2/10, 1/80, FOB destination, invoice dated August 5. Aug. 5) The merchandise sold to Knight had cost $4,700. Aug. 8) Purchased merchandise from Mitchell Corporation for $6,480 under credit terms of 1/10, 1/45, FOB shipping point, invoice dated August I Aug. 9) Paid $725 cash for shipping charges related to the August 5 sale to Knight Corp. Aug 10) Knight returned merchandise from the August sale that had sold for $200. Aug. 10) The cost of the merchandise returned by Perry's was $400. The merchandise was restored to inventory Aug. 12) After negotiations with Mitchell Corporation concerning problems with the purchases on August 8, Perry's received a credit memorandum from Mitchel granting a price reduction of $900 off the $6.480 of goods purchased Aug. 14) At Taylor's request. Perry's paid $400 cash for freight charges on the August 1 purchase, reducing the amount owed to Taylor Aug. 15) Received balance due from Knight Corp. for the August 5 sale less the return on August 10. eived balance due trom Kright Corp. for the Aug. 18) Paid the amount due Mitchell Corporation for the August 8 purchase less the price allowance from August 12. Aug. 19) Sold merchandise to Mannion Co. for $4,400 under credit terms of 1/10, FOB shipping point, invoice dated August 19. Aug. 19) The cost of the merchandise sold merchandise to Mannion was $2.200. Aug. 22) Mannion requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Perry's sent Mannion a $500 credit memorandum toward the $4.400 invoice to resolve the issue. Aug. 29) Received Mannion's cash payment for the amount due from the August 19 sale less the price allowance from August 22 Aug 30) Paid Taylor Company the amount due from the August 1 purchase. Total income $7, cost Tom N Aug. 1 Purchased merchandise from Taylor Company for $12,900 under credit terms of 1/10, 1/30, FOB destination, invoice dated August 1. A Sold merchandise to Knight Corp. for $7,900 under credit terms of 2/10, 1/60, FOB destination. Invoice dated August 5. The merchandise had cost $4,700. Aug Purchased merchandise from Mitchell Corporation for $6,480 under credit terns of 1/10, 1/45. FOB shipping point, invoice dated August 8. Aug. 9 Paid $725 cash for shipping charges related to the August $ sale to Knight Corp. Aug 10 Knight returned merchandise from the August 5 sale that had cost Perry's $200 and was sold for $400. The merchandise was restored to inventory. Aug 12 After negotiations with Mitchell Corporation concerning problems with the purchases on August 8, Perry's received a credit memorandum from Mitchell granting a price reduction of $900 off the 56, 480 of goods purchased. Aug. 14 At Taylor's request, Perry's paid $400 cash for freight charges on the August 1 purchase, reducing the amount Owed to Taylor. Aug. 15 Received balance due from Knight Corp. for the August 5 sale less the return on August 10. Aug. 18 Paid the amount due Mitchell Corporation for the August & purchase less the price allowance from August 12. Aug. 19 Sold merchandise to Mannion Co. for $4,400 under credit terms of n/16, FOB shipping point, invoice dated August 19. The merchandise had cost $2,200. Aug. 22 Mannion requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Perry's sent Mannion a $500 credit memorandum toward the $4,400 invoice to resolve the issue. Aug. 29 Received Mannion's cash payment for the amount due from the August 19 sale less the price allowance from August Aug. 30 Paid Taylor Company the amount due from the August 1 purchase
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