In: Accounting
On April 6, 2018, Home Furnishings purchased $41,000 of merchandise from Una's Imports, terms 3/10 n/45. On April 8, Home Furnishings returned $8,600 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15, 2018.
Required
What is the amount that Home Furnishings must pay Una's Imports on April 15?
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Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank
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Record the payment of the merchandise in Requirement (c) in a horizontal statements. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event.
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Net Amount Due , if Paid on 15 April will be $31428
b. Horizontal Statement Model- Home Furnishing, if Paid on April-15 | |||||||||||||||||
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 | $41,000.00 | = | $41,000.00 | + | ||||||||||||
b. | Purchase Return | -$8,600.00 | -$8,600.00 | ||||||||||||||
c. | Discount (41000-8600)*3% | -$972.00 | -$972.00 | ||||||||||||||
c. | Payment made | -$31,428.00 | $31,428.00 | -24541 |
Net amount payable if not paid with in 15 April will be $32400
Horizontal Statement Model- Home Furnishing, If not paid on April15 | |||||||||||||||||
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 | $41,000.00 | = | $41,000.00 | + | ||||||||||||
b. | Purchase Return | -$8,600.00 | -$8,600.00 | ||||||||||||||
c. | Payment made | -$32,400.00 | $32,400.00 | -32400 |