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 (3) (4) 1. 2. 3. 4. (2) (4) Accounts Payable 2,000 (1) 12,000 Inventory (1) (2) a. Describe each transaction. 14,000 (3) 150 (4) 150 11,880 14,000 2,000 120

Purchase-related transections The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts, Assume that the freight termis were Fo shipeing peint and that the credit terms were 1/10,N/30. a. Describe each transaction