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On April 6. Year 1, Home Furnishings purchased $32,000 of merchandise from Una Imports, terms 3/10 n/45. On April 8, Home ret
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Answer #1
a. Computation of Net Amount Due
Merchandised Purchased $32,000.00
Less merchandised Returned -$6,700.00
net Purchase $25,300.00
Less: Discount ( 25300*3%) $759.00
Net Amount Due $24,541.00
b. Horizontal Statement Model- Home Furnishing
Assets = Liabilities Stockholders’ Equity Income Statement Statement of Cash Flows
+ Common Retained Revenue - Expense = Net
S. No. Event Cash + Inventory Account Payable Stock Earnings Income
a. Purchase Inventory $32,000.00 = $32,000.00 +
b. Purchase Return -$6,700.00 -$6,700.00
c. Discount -$759.00 -$759.00
c. Payment made -$24,541.00 -$24,541.00 -24541
c. Computation of Net Amount Due
Merchandised Purchased $32,000.00
Less merchhandised Returned -$6,700.00
net Purchase $25,300.00
Amount Due $25,300.00
d. Horizontal Statement Model- Home Furnishing
Assets = Liabilities Stockholders’ Equity Income Statement Statement of Cash Flows
+ Common Retained Revenue - Expense = Net
S. No. Event Cash + Inventory Account Payable Stock Earnings Income
c. Payment made -$24,541.00 -$24,541.00 -24541

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