Analyze the following transactions in the accaunting equation using the following worksheet.

1- Sales of inventory for $20,000 on account; merchandise cost is $13,000

2- Rent payment made in advance for $1,500

3- Acquire additional inventory for $8,000; paid $2,000 cash with remailnder on credit.

4- Received payment of $4,000 from customer who purchased goods on credit last month.

5- Returned defective inventory in the amount of $500. The inventory was purchased on account.

Accounts Prepaid Accounts Retained

Cash Receivable Inventory Rent Payable Earnings

1

1

2

3

4

5