The following selected transactions were completed by Epic Co, during August of the cur- rent year: Aug. 3. Purchased merchandise on account for $33,400, terms FOB destination, 2/10, n/30. 9. Issued debit memorandum for $2,500 (S2,450 net of % discount) for merchandise from the August 3 purchase that was damaged in shipment 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/eom. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9. 31. Paid for imoice of Auguast 10. Instructions Illustrate the effects of cach of the preceding transactions on the accounts and financial statements of Epic Co. Identify cach transaction by date.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Purchase related transactions the following selected transactions were completed by epic co-during
The following selected transactions were completed by Epic Co, during August of the cur-
rent year:
Aug. 3. Purchased merchandise on account for $33,400, terms FOB destination, 2/10, n/30.
9. Issued debit memorandum for $2,500 (S2,450 net of % discount) for merchandise
from the August 3 purchase that was damaged in shipment
10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/eom.
Paid $600 cash to the freight company for delivery of the merchandise.
13. Paid for invoice of August 3, less debit memorandum of August 9.
31. Paid for imoice of Auguast 10.
Instructions
Illustrate the effects of cach of the preceding transactions on the accounts and financial
statements of Epic Co. Identify cach transaction by date.
Transcribed Image Text:The following selected transactions were completed by Epic Co, during August of the cur- rent year: Aug. 3. Purchased merchandise on account for $33,400, terms FOB destination, 2/10, n/30. 9. Issued debit memorandum for $2,500 (S2,450 net of % discount) for merchandise from the August 3 purchase that was damaged in shipment 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/eom. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9. 31. Paid for imoice of Auguast 10. Instructions Illustrate the effects of cach of the preceding transactions on the accounts and financial statements of Epic Co. Identify cach transaction by date.
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