Illustrate the effects on the accounts and financial statements of recording the following transactions: a.) Sold merchandise

Question:

Illustrate the effects on the accounts and financial statements of recording the following transactions:

a.) Sold merchandise for cash, $23,500. The cost of the merchandise sold was $14,000.

b.) Sold merchandise on account, $12,000. The cost of the merchandise sold was $7,200.

c.) Sold merchandise to customers who used MasterCard and VISA, $190,000. The cost of the merchandise sold was $115,000.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...