Purchase-Related Transactions The debits and credits from four related transactions, (1) through (4), are presented in the following accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, 1/30. Cash Accounts Payable (2) 150 (3) 1,980 (1) 13,860 11,880 11,880 Inventory 13,860 (3) 150 1,980 (2) a. Describe each transaction 1. Purchased merchandise on account net of discount. 2. Paid freight 3. An allowance for return of merchandise was granted by the creditor 4. Poid the balance due within the discount period b. Determine the involce amount of the merchandise that was returned in (3)