Question

On April 6, Year 1, Home Furnishings purchased $32,000 of merchandise from Una Imports, terms 3/10 n/45. On April 8, Home returned $6,700 of the merchandise to Una Imports for credit. Home paid cash for the merchandise on April 15, Year 1. Required a. What is the amount that Home must pay Una Imports on April 15? b. Record the events in a horizontal statements model. c. How much must Home pay for the merchandise purchased if the payment is not made until April 20. Year 1? d. Record the payment in Requirement cin a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What is the amount that Home must pay Una Imports on April 15? Net amount due Required 8 >

Answer 1

Answers

• [A]
  Net amount due = $ 32000 - $ 6700 = $ 25,300
• [B]

Event	Cash	Inventory	Accounts Payable	Common Stock	Retained earnings	Revenues	Expenses	Net Income	Statement of cash flows
1		$32,000	$32,000
2		($6,700)	($6,700)
3		($759)	($759)
4	($24,541)		($24,541)						($24,541)	OA

• [C]
  Payment = $ 25,300, which is net amount due in Req [A]
• [D]

Event	Cash	Inventory	Accounts Payable	Common Stock	Retained earnings	Revenues	Expenses	Net Income	Statement of cash flows
3	($25,300)		($25,300)						($25,300)	OA