Current Attempt in Progress

Flounder Company buys merchandise on account from Novak Company for $$556.$ Flounder sells the goods to Ellis for $$846$ cash. Use a tabular summary to record the transactions for Flounder Company using a perpetual inventory system. Include margin explanations for the changes in revenues and expenses.

Decreases in assets, liabilities, or stockholders' equity require a negative sign or parentheses.

Increases in expenses require a negative sign or parentheses.

Reductions in revenues require a negative sign or parentheses.