Part B: The principles and procedures of accounting for merchandizing operation, and inventory valuation.

1. Glover Co. returned defective goods costing $5,000 to Mal Company on April 19, for credit. The goods were purchased April 10, on credit, terms 3/10, n/30. The entry by Glover Co. on April 19, in receiving full credit is: (2 Marks)

2. McIntyre Company made a purchase of merchandise on credit from Marvin Company on August 8, for $11,000, terms 3/10, n/30. On August 17, McIntyre makes the appropriate payment to Marvin. The entry on August 17 for McIntyre Company is: (3 Marks)

3. On July 9, Elijah Company sells goods on credit to Miley Company for $7,000, terms 1/10, n/60. Elijah receives payment on July 18. The entry by Elijah on July 18 is: (3 Marks)

4. Aurangzeb Company uses a perpetual inventory system. During May, the following transactions and events occurred. (2 Marks) May 13 Sold 8 motors at a cost of $45 each to Scruffy Brothers Supply Company, terms 4/10, n/30. The motors cost Charlie $26 each. May 16 One defective motor was returned to Aurangzeb