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Listed below are selected examples of transactions related to the purchase and sale of inventory from the perspective of the seller or the buyer as indicated

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Listed below are selected examples of transactions related to the purchase and sale of inventory from the perspective of the seller or the buyer as indicated. Assume a perpetual inventory system is in use. 1. 2. 3. 4. 5. 6. Buyer: Purchase of $2,940 of inventory for cash. Buyer: Return of $630 of inventory to seller for credit on account. Buyer: Purchase of $3,360 of inventory on account, terms 2/10, n/45. Buyer: Payment of $340 cash for freight on purchase of inventory (FOB shipping point). Buyer: Payment of amount owed for purchase of $2,940 of inventory, terms 2/10, n/30, paid within discount period. Seller: Sale of inventory on account, terms n/30. Selling price $10,000; cost $4,000. Management expects a return rate of 7.69%. Seller: Return of damaged inventory from buyer for cash. Selling price $460; cost $186. All of the goods were discarded because they are not resaleable. Seller: Payment of $500 cash for freight on sale of inventory (FOB destination). Seller: Return of unwanted inventory from buyer for credit on account. Selling price $340; cost $134. Goods restored to inventory for future resale. Seller: Receipt of payment ($6,720) from customer on account, terms n/30. 7. 8. 9. 10. For each of the above transactions, indicate (a) the basic type (asset, liability, revenue, or expense) of each account to be debited and credited; (b) the specific name(s) of the account(s) to debit and credit (for example, Inventory); and (c) whether each account is increased (+) or decreased (-) and by what amount. The first one has been done for you as an example. (Enter specific debited account items in alphabetical order. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).)