On 3/1/20, the Larson Company, a large retailer, purchases merchandise from a supplier for $80,000, delivered the same day. At the time the merchandise is purchased, Larson has not found a customer for it yet, and its managers cannot be 100% sure they ever will. Larson pays 10% of the purchase price on the day of delivery. The remaining portion of the purchase price is paid on 4/30/20. On 5/15/20, a customer buys and receives from Larson half of the merchandise that Larson bought on 3/1/20. The customer agrees to pay $90,000 in total: half paid on 5/15/20, half paid three months later on 8/15/20. Which of the following statements are true about the journal entries recorded by Larson? (select all that apply - i.e. just one or as many as all of them) On 3/1, balance sheet accounts are credited for $80,000 in total The journal entries recorded on 3/1 affect Larson's Income Statement but not Larson's Cash Flow Statement The entries recorded on 4/30 do not affect Larson's income statement The entries recorded on 5/15 increase Larson's total assets by $50,000 On 5/15, Revenue is credited for $45,000 The entries recorded on 8/15 do not change Larson's total assets Question 11 (8 points) (continued from the previous question) Which of the following statements are true about the balances of Larson's accounts? (select all that apply - i.e. just one or as many as all of them) the total balance of Larson's assets is higher on 5/1 than on 2/28 the total balance of Larson's liabilities on 2/28 is the same as on 5/1 the total balance of Larson's assets on 4/29 is higher by $22,000 than on 5/16 the total balance of Larson's assets on 5/14 is the same as on 8/16 Previous Page Next Page Page 10 of 14