Hanna owns a pottery store named Hanna's Stuff. The following transactions take place in February. Hanna's Stuff prepares monthly financial statements.

Suggest the account(s) likely to be impacted (see example below). If you use Retained Earnings, further state dividend, or name a revenue account, or name an expense account. The exact title is not always critical. For example, I used "Repair Expense" below, someone else may call it "Maintenance Expense."  The key thing is the expense designation. Management really determines the level of detail they prefer in the accounting records

E.) Please add a sentence or two of explanation, so we can understand your logic (see example below).

Answer in this format:

Example:

#Ex. Hanna's paid $175 to have a machine repaired. 

A:  -175 Cash

L:  NE [this means no effect]

E:  -175 Retained Earnings for Repair Expense

Explanation: Transaction indicated item was "paid" which would mean cash goes down. This is a small repair so it would likely be immediately expensed.

 

1. Hanna's buys (pays and receives) $6,000 of inventory for an upcoming tradeshow.
2. The employee Hanna's Stuff gave a loan to back in Q18 pays back $1,000
3. The customer from Q12 and Q30 came by the store and was given their $200 back.
4. Hanna's Stuff sells 20 of the clay figurines purchased back in Q7. This is a new customer that Hanna's Stuff is trying to develop a relationship with so they sell the inventory at cost. (Hint - See Q10. Do this in 2 rounds of entries again.)
5. Hanna reviews the inventory purchased in Q31 and finds some items are damaged. She returns $1,000 dollars worth and receives store credit.