Question 4-19 is attached…

Question 4-19 is attached…

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Exercise 4-19 Purchase-Related Transactions
Illustrate the effects on the accounts and financial statements of the following related
transactions of Seaside Diagnostic Company:
a.) Purchased $48,000 of merchandise from Davis Co. on account, terms 2/10, n/30.
b.) Paid the amount owed on the invoice within the discount period.
c.) Discovered that $10,000 of the merchandise was defective and returned items, receiving credit.
d.) Purhased $7,500 of merchandise from Davis Co. on account, terms n/30.
e.) Received a check for the balance owed from the return in “c” after deducting for the purchase in “d”.

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