Analyzing the Accounts}

Casey Company engaged in the following transactions:

a. Made credit sales of \(\$ 615,000\). The cost of the merchandise sold was \(\$ 417,500\)

b. Collected accounts receivable in the amount of \(\$ 592,800\)

c. Purchased goods on credit in the amount of \(\$ 445,150\)

d. Paid accounts payable in the amount of \(\$ 403,200\)

\section*{Required:}

Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.

Exercise