Purchases transactions Bowers Company purchased merchandise on account from Saunders Corp. for $5,700, terms 1/10,n/30. Bowers returned merchandise with an invoice amount of $1,100 and received full credit. a. If Bowers Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. x b. What account is debited by Bowers Company to record the return? Feedback r Check My Work a. Since buyers normally take all purchase discounts, the net purchase price is recorded at the time of purchase. If the buyer makes a return of merchandise or is granted a price allowance for an invoice with a purchase discount, the amount of the return is recorded at the invoice price less the discount. b. Any discounts or returns are recorded directly by the buyer who reduces the balances of Accounts Payable and Merchandise Inventory, using a debit memo based on the net cost of the merchandise. Transactions for buyer and seller Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800. Shore Co. issued a credit memo for $7,500 to Blue $ tar Co. for merchandise that was returned. The cost of the merchandise returned was $4,000. Journalize Shore Co.'s entry for the sale, credit memo, and payment of amount due. If an amount box does not require an entry, leave it blank. Feedoack romany mor Note who is the buyer and who is the seller. The payment is less returns and discounts, and discounts are not taken on returns. If applicable, determine whether the buyer or seller is to pay any freight. Journalize Blue Star Co.'s entry for the purchase, credit memo, and payment of amount due. If an amount box does not require an entry, leave it blank. Adjusting entries Hahn Flooring Company uses a perpetual inventory system. Journalize the December 31 adjusting entries based upon the following: a. The inventory account has a balance of $1,333,150, while physical inventory indicates that $1,309,900 of merchandise is on hand. Assume any shrinkage is a normal amount. If an amount box does not require an entry, leave it blank. Feedback rometrimet a. Inventory shrinkage is recorded by decreasing merchandise inventory and increasing cost of merchandise sold for the difference between the perpetual inventory records and the inventory on hand. b. Sales refunds and allowances of $125,000 and merchandise returns of $80,000 are estimated for the current year's sales. If an amount box does not require an entry, leave it blank. Feedback rones Wr mok b. At the end of an accounting period, sellers are required to estimate returns and allowances. Two entries are required. The first reduces Sales account and increases a Customer Refunds Payable account for the estimated returns and allowances to be given to customers in the future. The second creates an Estimated Returns Inventory account and reduces the Cost of Goods Sold account for the cost of the merchandise expected to be returned. Calculate the total price for each offer, keeping in mind that the discount is deducted from the total price and the freight is added