Question - The following selected transactions were completed by Epic Co. during August of the current year:
Aug. 3. Purchased merchandise for $33,400, terms FOB destination, 2/10, n/30.
Aug. 9. Issued debit memorandum for $7,000 of merchandise returned from purchase on August 3.
Aug. 10. Purchased merchandise, $25,000, terms FOB shipping point, n/eom. Paid freight of $600 on purchase.
Aug. 13. Paid for invoice of August 3, less debit memorandum of August 9 and discount.
Aug. 31. Paid for invoice of August 10.
Instructions - Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date.