FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:On April 6, Home Furnishings purchased $32,000 of merchandise from Una's Imports, terms 3/10, n/45. On April 8, Home Furnishings
returned $6,700 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15.
Required
a. What is the amount that Home Furnishings must pay Una's Imports on April 15?
b. Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for
investing 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.
c. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20?
d. Record the payment of the merchandise in Requirement (c) in a horizontal statements model. In the Cash Flow column, use OA to
designate operating activity, IA for investing 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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