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[The following information applies to the questions displayed below.] Larrys Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The

[The following information applies to the questions displayed below.]

Larrys Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

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$560,000 a. Sold merchandise for cash (cost of merchandise $257,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $2,700). C. Sold merchandise (costing $4,920) to a customer on account with terms 2/10, n/30. d. Collected half of the balance owed by the customer in (c) within the discount period. e. Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid. 4,200 8,200 4,018 1,350

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