Question 3 of 5 1.14/3 E 4. Listed below are selected examples of transactions related to the purchase and sale of inventory from the perspective of the seller or the buyer as indicated. Assume a perpetual inventory system is in use. 1. Buyer: Purchase of $3.290 of inventory for cash. 2. Buyer: Return of $705 of inventory to seller for credit on account. 3. Buyer: Purchase of $3,760 of inventory on account, terms 2/10,n/45. Buyer: Payment of $390 cash for freight on purchase of inventory (FOB shipping point). 5. Buyer: Payment of amount owed for purchase of $3,290 of inventory, terms 2/10,n/30, paid within discount period. Seller: Sale of inventory on account, terms n/30. Selling price $20,000; cost $8,000. Management expects a return rate of 6. 7.69% Seller: Return of damaged inventory from buyer for cash. Selling price $510; cost $211. All of the goods were discarded 7 because they are not resaleable. 8. Seller: Payment of $550 cash for freight on sale of inventory (FOB destination), Seller: Return of unwanted inventory from buyer for credit on account. Selling price $390; cost $149. Goods restored to 9. inventory for future resale. 10. Seller: Receipt of payment ($7,520) from customer on account terms n/30. 9 For each of the above transactions, indicate (a) the basic type (asset, liability, revenue, or expense) of each account to be debited and credited; (b) the specific name(s) of the account(s) to debit and credit (for example, Inventory); and (c) whether each account is increased (+) or decreased (-) and by what amount. The first one has been done for you as an example. (Enter specific debited account Question 3 of 5 1.1473 E Account Debited (b) (c) Item (a) Basic Type of Account Asset Specific Account Amount (a) Basic Type of Account Asset Speci 1. Inventory $3.290 2. Liability Accounts Payable $ (705) Asset Inventory Asset Inventory $ 3760 Liability Accounts Pa 4. Asset Inventory $ 390 Asset v Cash 5. Liability Accounts Payable $ (3290) Asset v Asset in 6. Asset Accounts Receivable $ 20000 Revenue Sales Expense Cost of Goods Sold $ y 8000 Asset Sales Retur Asset Sales Return and Allowances $ 1560 Liability Sales Retur 7. v $ $ 8. $ 9. $ V 10. Debited Account Credited (b) (c) int Amount (a) Basic Type of Account Asset Specific Account Amount $3,290 Cash -$3,290 (705) Asset Inventory (705) 3760 $ Liability Accounts Payable 2760 $ 390 Asset Cash (390) $ $ (3290) Cash Asset Asset Inventory $ 20000 Revenue Sales 20000 8000 Asset Sales Return and Allowances V 8000 S vances 1560 Liability 1560 Sales Return and Allowances $ v $ $ $ $