On April 6, Home Furnishings purchased $33,000 of merchandise from Una's Imports, terms 1/10, n/45. On April 8, Home Furnishings returned $6,900 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15.

HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement = Liabilities + Stockholders' Equity Net Accounts Common Retained Revenue Expenses = + Income Payable Stock Earnings Events Statement of Cash Flows Assets Merchandise Inventory Cash + = + Paid accounts payable Events HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Net Merchandise Accounts Common Retained Revenue - Expenses = = Income Inventory Payable Earnings 33,000/= 33,000+ (6,900) = (6,900) + (577) Statement of Cash Flows Cash + Stock + Purchase inventory Return inventory Record discount Paid accounts payable + HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement = Liabilities + Stockholders' Equity Net Accounts Common Retained Revenue Expenses = + Income Payable Stock Earnings Events Statement of Cash Flows Assets Merchandise Inventory Cash + = + Paid accounts payable Events HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Net Merchandise Accounts Common Retained Revenue - Expenses = = Income Inventory Payable Earnings 33,000/= 33,000+ (6,900) = (6,900) + (577) Statement of Cash Flows Cash + Stock + Purchase inventory Return inventory Record discount Paid accounts payable +