What was the amount of cash that the craft shop paid

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Reference no: EM131264075

The following events pertain to The Craft Shop, which began operations in October 2014. The company uses the perpetual inventory method.

1) October 1 Issued common stock to investors for $15,000

2) October 2 Purchased $12,000 of inventory on account with terms 2/10, n/30

3) October 3 Sold on account for $18,000 merchandise that had cost $10,000: terms 1/10, n/30

4) October 4 Returned defective merchandise with list price of $1,000 from Oct. 2 purchase

5) October 5 Paid freight of $100 on goods sold to customers, FOB destination

6) October 10 Paid the amount due on the merchandise purchased Oct. 2

7) October 12 Received cash from customer in settlement of Oct. 3 sale

Required:

a. What was the amount of cash that The Craft Shop paid on October 10?

b. What was the amount of cash that The Craft Shop collected on October 12?

c. What was the balance in The Craft Shop's cash account at the end of the day on October 12?

Reference no: EM131264075

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