Purchase$-$related transactions

The debits and credits from four related transactions, $(1)$ through $(4),$ are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were $1/10,$ n$/30.$

Cash

Transaction Debit amount Transaction Credit amount

$(2)150$

$(4)11,880$

Accounts Payable

Transaction Debit amount Transaction Credit amount

$(3)2,000(1)14,000$

$(4)12,000$

Inventory

Transaction Debit amount Transaction Credit amount

$(1)14,000(3)2,000$

$(2)150(4)120$

a$.$ Describe each transaction.

$1.$ fill in the blank $1$ of $4$

$2.$ fill in the blank $2$ of $4$

$3.$ fill in the blank $3$ of $4$

$4.$ fill in the blank $4$ of $4$