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 (4) 11,880 Inventory (1) 13,860 (3) 1,980 150 (2) a. Describe each transaction 1. 2. 3. 4. b. Determine the involce amount of the merchandise that was returned in (3). 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 (1) 13,860 (3) 1,980 (2) 150 a. Describe each transaction 1. 3. 4. An allowance for return of merchandise was granted by the creditor, Paid freight Paid the balance due within the discount period Purchased merchandise on account net of discount (3)