Question
After the amount due on a sale of $163,525, terms 2/10, n/30, is received from a customer within the discount period, the seller consents to
After the amount due on a sale of $163,525, terms 2/10, n/30, is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was $81,763.
b. Illustrate the effects on the accounts and financial statements of the return and the refund. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases, net cash outflows, and all negative effects on net income as negative amounts.
Balance Sheet | |||||||||||
Assets | = | Liabilities | + | Stockholders' Equity | |||||||
+ | + | = | + | ||||||||
fill in the blank 7 | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | |||||||
Statement of Cash Flows | Income Statement | ||||||||||
fill in the blank 13 |
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