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Aug.1Purchased merchandise from Arotek Company for $7,100 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1.
5Sold merchandise to Laird Corp. for $4,970 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,549.
8Purchased merchandise from Waters Corporation for $6,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Sheng’s request, Waters paid the $240 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.)
9Paid $300 cash for shipping charges related to the August 5 sale to Laird Corp.
10Laird returned merchandise from the August 5 sale that had cost Sheng $591 and been sold for $828. The merchandise was restored to inventory.
12After negotiations with Waters Corporation concerning problems with the merchandise purchased on August 8, Sheng received a credit memorandum from Waters granting a price reduction of $966.
14At Arotek’s request, Sheng paid $400 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotek.15Received balance due from Laird Corp. for the August 5 sale less the return on August 10.
18Paid the amount due Waters Corporation for the August 8 purchase less the price reduction granted.
19Sold merchandise to Tux Co. for $4,260 under credit terms of 1/10, n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $2,956.
22Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sheng sent Tux a $710 credit memorandum to resolve the issue.
29Received Tux’s cash payment for the amount due from the August 19 sale.
30Paid Arotek Company the amount due from the August 1 purchase.
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