Effects on accounts and financial statements

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Illustrate the effects on the accounts and financial statements of the following related transactions of La Paz Company:

a. Purchased $18,400 of merchandise from Harbin Co. on account, terms 2/10, n/30.

b. Paid the amount owed on the invoice within the discount period.

c. Discovered that $4,500 of the merchandise was defective and returned items, receiving credit.

Reference no: EM13151682

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