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  3. method. events pertain to the craft shop, which be

method. events pertain to The Craft Shop, which began operations in October. The company uses...

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Accounting

method.
events pertain to The Craft Shop, which began operations in October. The company uses the perpe
October 1 Issued common stock to investors for $18,000
October 2 Purchased $17,000 of inventory on account with terms 210,n30
October 3 Sold on account for $22,000 merchandise that had cost $11,000; terms 110, n/30
October 4 Returned defective merchandise with list price of $1,400 from October 2 purchase
October 5 Paid freight of $150 on goods sold to customers, FOB destination
October 10 Paid the amount due on the merchandise purchased October 2
October 12 Received cash from customer in settlement of October 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?
a. Amount of cash paid on October 10
b. Amount of cash collected on October 12
c. Balance in cash account at the end of the day on October 12
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