16. When merchandise inventory is purchased on account, how is the accounting equation affected? (Assume a perpetual inventory system is in use.)
17. If goods are shipped FOB destination, who is responsible for the shipping costs?
18. Miller Co. sold goods with the terms 2/10, n/30. What do the terms mean?
19. If the buyer is to pay the transportation cost of delivering merchandise, the freight or shipping terms would be stated as:
20. On June 1, 2011, merchandise subject to terms 2/10, n/30 was sold on account to a customer for $23,500. On June 3, the seller issued a credit memorandum for $5,100, accepting merchandise returned by the customer. This was prior to payment by the customer.
a) What is the amount of cash collected by the seller if the payment is made by the customer on June 8, 2011?
b) What is the amount of cash collected by the seller if payment is made by the customer on June 21, 2011?