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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

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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 Buver. Purchase of $2.870 of inventory for cash Buyer: Return of $615 of inventory to seller for credit on account. Buyer. Purchase of $3.280 of inventory on account terms 2/10, 1/45 Buyer: Payment of $330 cash for freight on purchase of inventory FOB shipping point) Buyer Payment of amount owed for purchase of $2,870 of inventory, terms 2/10, 30, paid within discount period. Seller: Sale of inventory on account, terms 30. Selling price $20,000, cost $8,000. Management expects a return rate of 7.69% Seller. Return or damaged inventory from buyer for cash. Selling price $450, cost $181. All of the goods were discarded because they are not resaleable Seller. Payment of $490 cash for freight on sale of inventory FOB destination) Seller: Return of unwanted inventory from buyer for credit on account Selling price $330, cost $131. Goods restored to inventory for future resale Seller Receibt of payment 56.560 from customer on account terms 30 7 10 For each of the above transactions, indicate the basic type asset liability revenue or expense of each account to be debited and credited the pecite names of the accounts) to debit and credit for example inventory and it whether each account is increased to decreased and by what amount. The first one has been done for you as an example Enter specific debited account terms in lahatletical order Internative amounts using either a negative sin preceding the numbers, 45 or parentheses credited, (b) the specific name(s) of the account(s) to debit and credit (for example, Inventory and to where increased [+ or decreased (-) and by what amount. The first one has been done for you as an example, fenter specific debuted account terns in atphabetical order. Enter negative amounts using either a negative sin preceding the number as 45 or parentheseses (451) bited c) Account Credited (b) (c) Amount (a) Basic Type of Account Asset Specific Account Amount $2,870 Cash -$2,870 $

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