On April 6, 2018, Home Furnishings purchased $36,000 of merchandise from Una's Imports, terms 1/10 n/45. On April 8, Home Furnishings returned $7,600 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15, 2018.

Required

1. What is the amount that Home Furnishings must pay Una's Imports on April 15?

2. 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, or NC for net change in cash. If the element is not affected by the event, leave the cell blank.

3. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20, 2018?

4. Record the payment of the merchandise in Requirement (c) in a horizontal statements. 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.

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, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Enter any decreases to account balances and cash outflows with a minus sign. Not every cell will require entry.)

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HOME FURNISHINGS

Effect of Events on the Financial Statements

Events

Balance Sheet

Income Statement

Statement of Cash Flows

Assets

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Liabilities

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Stockholders Equity

Revenue

Expenses

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Net Income

Cash

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Merchandise Inventory

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Accounts Payable

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Common Stock

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Retained Earnings

Purchase inventory

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Return inventory

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Discount percentage

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Paid accounts payable

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