Rachet Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Rachet's records are as follows: Inventory at December 31 (based on a physical count of goods in Rachet's warehouse on December 31) Accounts payable at December 31: Vendor Boxes Company Crates Company Driver Company Express Company Freight Company Gears Company Accounts payable, December 31 Sales for the year Terms 2%, 10 days, net 30 Net 30 Net 30 Net 30 Net 30 Net 30

Rachet Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Rachet's records are as follows: Additional Information: 1. Parts held by Rachet on consignment from Crates, amounting to $195,000, were included in the physical count of goods in Rachet's worehouse and in accounts payable at December 31 2. Parts totaling $30,000, which were purchased from Freight and paid for in December, were sold in the last week of the year and appropriately recorded as sales of $36,000. The parts were included in the physical count of goods in Rachet's warehouse on December 31 because the parts were on the loading dock waiting to be picked up by customers. 3. Parts in transit on December 31 to customers, shipped f.o.b. shipping point on December 28 , amounted to $50.000. Rachet Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Rachet's records are as follows: Additional Information: 1. Parts held by Rachet on consignment from Crates, amounting to $195,000, were included in the physical count of goods in Rachet's worehouse and in accounts payable at December 31 2. Parts totaling $30,000, which were purchased from Freight and paid for in December, were sold in the last week of the year and appropriately recorded as sales of $36,000. The parts were included in the physical count of goods in Rachet's warehouse on December 31 because the parts were on the loading dock waiting to be picked up by customers. 3. Parts in transit on December 31 to customers, shipped f.o.b. shipping point on December 28 , amounted to $50.000