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Purchased inventory that cost $5,200 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $470
- Purchased inventory that cost $5,200 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $470 were paid in cash.
- Returned $400 of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
- Paid the amount due on its account payable to Ross Company within the cash discount period.
- Sold inventory that had cost $5,700 for $8,700 on account, under terms 2/10, n/45.
- Received merchandise returned from a customer. The merchandise originally cost $470 and was sold to the customer for $770 cash. The customer was paid $770 cash for the returned merchandise.
- Delivered goods FOB destination in Event 4. Freight costs of $570 were paid in cash.
- Collected the amount due on the account receivable within the discount period.
- Took a physical count indicating that $1,400 of inventory was on hand at the end of the accounting period.
Fill in the balance sheet and income statement
Assets | = | Liabilities | + | Stockholders Equity | Revenue | Expenses | = | Net Income
|
Cash | + | Accounts Receivable | + | Merchandise Inventory | = | Accounts Payable | + | Common Stock | + | Retained Earnings |
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