On April 6, Year 1, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $2,400 of the merchandise to Una Imports for credit. Home paid cash for the merchandise on April 15, Year 1. Required a. What is the amount that Home must pay Una Imports on April 15? b. Record the events in a horizontal statements model like the following one. c. How much must Home pay for the merchandise purchased if the payment is not made until April 20, Year 1? d. Record the payment in Requirement c in a horizontal statements model like the one above.

Required A Required B Required C Required D Record the events in a horizontal statements model like the following one. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Net Liabilities Stkholders' Equity Revenue - Expense = Income Accounts. Common Retained Payable S tock Earnings Assets Statement of Cash Flow Events Cash Inventory + + + + + + 1. Pur. inv. 2. Ret. inv. 3. Disc. 4. Pd. AP + + + + + +