Effect of purchase returns and allowances and purchase discounts on the financial statemen...

Sept

1

Acquired $60,000 cash from the issue of common stock.

1

Purchased $36,000 of merchandise on account with terms 2/10, n/30

5

Paid $800 cash for freight to obtain merchandise purchased on September 1.

8

Sold merchandise that cost $20,000  to customers for $38,000 on account, with terms 2/10, n/30.

8

Returned $1,500 of defective merchandise from the September 1 purchase to the supplier.

10

 Paid cash for the balance due on the merchandise purchased on September 1.

20

Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period

30

Paid $4,900 cash for selling expenses