Listed below are selected examples of transactions related to the purchase and sale of inventory from the perspective of the seller or the buyer as indicated. Assume a perpetual inventory system is in use. 1. 2. 3. 4. 5. 6. Buyer: Purchase of $4,200 of inventory for cash. Buyer: Return of $900 of inventory to seller for credit on account. Buyer: Purchase of $4,800 of inventory on account terms 2/10,n/45. Buyer: Payment of $520 cash for freight on purchase of inventory (FOB shipping point). Buyer: Payment of amount owed for purchase of $4,200 of inventory, terms 2/10, 1/30, paid within discount period. Seller: Sale of inventory on account, terms /30. Selling price $10,000; cost $4,000. Management expects a return rate of 7.69% Seller: Return of damaged inventory from buyer for cash. Selling price $640; cost $276. All of the goods were discarded because they are not resaleable. Seller: Payment of $680 cash for freight on sale of inventory (FOB destination) Seller: Return of unwanted inventory from buyer for credit on account Selling price $520; cost $188. Goods restored to inventory for future resale. Seller: Receipt of payment ($9,600) from customer on account terms n/30 7. . 9. 10. Account Debited Accoy (a) (b) (c) (a) (b) Item Basic Type of Account Specific Account Amount Basic Type of Account Specific A 1. Asset Inventory $4,200 Asset Cas! 2. $ $ 4. C $ 5. $ > Casi Invent 6. $ $ $ v > $ punt Debited Account Credited (c) c (a) (b) (c) Account Amount Basic Type of Account Specific Account Amount itory $4,200 Asset Cash -$4,200 $ v $ $ A $ > $ A $ > $ . AB Cash C $ Inventory $ O Ac $ v $ O AC $ C $ $ $