(Appendix) PURCHASES, TRANSPORTATION-IN, AND PURCHASE RETURNS. Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses periodic inventory accounting. Alpharack engaged in the following transactions related to purchases during 19x6:

a) Purchased on credit 320 Wilbur T-100 tennis rackets. The rackets have a list price of $30 each.

b) Paid Barker Trucking $63 to transport a purchase of tennis rackets from a manufacturer to Alpharack’s warehouse.

ce) Paid an account payable for a purchase of tennis balls. The tennis balls had been purchased at a list price of $1,500.

d) Purchased $8,000 of tennis clothing from Designer Tennis Wear by issuing a 3-

month, 13% note.

e) Returned 10 defective equipment bags to the manufacturer. The bags had been purchased at a cost of $16 each. Alpharack has paid for the purchase.

f) Paid the note payable issued in transaction d plus accrued interest.

REQUIRED:

1. Prepare entries for each of the items described.

2. By how much did the cost of goods available for sale increase as a result of these activities? LO9