1213

On June 5, Anderson Company sold merchandise on account for $500, credit terms 2/10, 1/30 that cost $175. The company uses the net method to record sales. On June 10, the customer returned the goods because they were defective. What effect would the sales return have on Lawson's accounting equation? Assume Anderson uses a perpetual inventory system. Total assets and stockholders equity would increase $315. Total assets and stockholders equity would decrease $315. Total assets and stockholders' cquity would increase $325 Total assets and stockholders equity would decrease $325 Lamar Company had the following information for the year. Calculate Gross Profit Cost of Goods Sold $550,000 Interest Revenue 94,000 Operating Expenses interest Expense 10,000 Net Sales $4.000 $150.000 Net Income 800.000 $100,000 590.000 O $250.000 594.000