Make appropriate entries for the following transactions at the Franke Company or Thompson Products Indicate for each account used whether it is an asset, a liability, a revenue, or an expense account Franke purchases $7,500 of merchandise for resale Franke uses the end of period adjustment to determine the cost of goods sold for the period Thompson purchases $5,000 of parts to be incorporated into the products it manufactures Thompson maintains perpetual inventory valuations Franke sells $10,000 of merchandise and offers all of its customers payment terms of 2 , 10 days net, 30 days Franke accounts for cash discounts offered on the net basis Thompson sells $10,000 of merchandise and offers all of its customers payment terms of 2 , 10 days net, 30 days Thompson accounts for cash discounts offered on the gross basis Franke receives a $400 payment from a bankruptcy customer in full payment of the customers $800 receivable (originally recorded 10 months ago) Franke uses an Allowance for Doubtful Accounts contra account Thompson receives a $500 payment from a bankruptcy customer in full payment of the customers $1000 receivable (originally recorded in the last fiscal year) Thompson does not use an Allowance for Doubtful Accounts contra account Franke pays an employee $2,000 for vacation leave that the employee is taking this accounting period Franke cactus the liability for vacation salaries as employees earn vacation days throughout the year Thompson pays $2,000 of dividends on its common stock these dividends were declared and accrued during the last accounting period Franke pays $1,4000 for an insurance policy that provides protection beginning next month Thompson pays $5,000 in an out of court settlement of a lawsuit for which it had previously accrued (reserved) $10,000 of probable liability

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Make appropriate entries for the following transactions at the Franke Company or Thompson Products. Indicate for each account used whether it is an asset, a

Make appropriate entries for the following transactions at the Franke Company or Thompson Products. Indicate for each account used whether it is an asset, a liability, a revenue, or an expense account.
1. Franke purchases $7,500 of merchandise for resale; Franke uses the end-of-period adjustment to determine the cost of goods sold for the period.
2. Thompson purchases $5,000 of parts to be incorporated into the products it manufactures; Thompson maintains perpetual inventory valuations.
3. Franke sells $10,000 of merchandise and offers all of its customers payment terms of 2%, 10 days/net, 30 days; Franke accounts for cash discounts offered on the net basis.
4. Thompson sells $10,000 of merchandise and offers all of its customers payment terms of 2%, 10 days/net, 30 days; Thompson accounts for cash discounts offered on the gross basis.
5. Franke receives a $400 payment from a bankruptcy customer in full payment of the customers $800 receivable (originally recorded 10 months ago). Franke uses an Allowance for Doubtful Accounts contra account.
6. Thompson receives a $500 payment from a bankruptcy customer in full payment of the customers $1000 receivable (originally recorded in the last fiscal year). Thompson does not use an Allowance for Doubtful Accounts contra account.
7. Franke pays an employee $2,000 for vacation leave that the employee is taking this accounting period. Franke cactus the liability for vacation salaries as employees earn vacation days throughout the year.
8. Thompson pays $2,000 of dividends on its common stock; these dividends were declared and accrued during the last accounting period.
9. Franke pays $1,4000 for an insurance policy that provides protection beginning next month.
10. Thompson pays $5,000 in an out-of-court settlement of a lawsuit for which it had previously accrued (reserved) $10,000 of probable liability.