Analyzing the Accounts

Casey Company uses a perpetual inventory system and engaged in the following transactions:

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

Collected accounts receivable in the amount of $$537,000.$

Purchased goods on credit in the amount of $$445,150.$

Paid accounts payable in the amount of $$403,200.$

Required:

Question Content Area

Prepare the journal entries necessary to record the transactions. If an amount box does not require an entry, leave it blank.

a$.$

blank

b$.$

c$.$

d$.$

Question Content Area

Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.

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

b$.$ Collected accounts receivable in the amount of $$537,000.$

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

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