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 of recording the following transactions:
a. Sold merchandise for cash, $62,500. The cost of the goods sold was $30,000.
b. Sold merchandise on account, $27,800. The cost of the goods sold was $16,000.
c. Sold merchandise to customers who used MasterCard and VISA, $287,500. The cost of the merchandise sold was $170,000.
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...