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please answer all 3 questions Purchase-Related Transactions Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms 2/10, n/30. The cost
please answer all 3 questions
Purchase-Related Transactions Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms 2/10, n/30. The cost of the merchandise sold is $51,600. Steritech Co. issues a credit memorandum for $5,000 ($4,900 net of the 2% discount) for merchandise that was damaged in shipment. Butler Co. agreed to keep the damaged merchandiise. Illustrate the effects on the accounts and financial statements of Butler Co. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. The purchase Balance Sheet Liabilities + Assets Stockholders' Equity + Accounts Payable Capital Stock -- Inventory Income Statement Statement of Cash Flows No effect No effect b. The credit for damaged merchandise. Balance Sheet Assets Liabilities + Stockholders' Equity Income Statement Statement of Cash Flows The payment of the invoice within the discount period. Balance Sheet Assets Liabilities Stockholders' Equity Statement of Cash Flows Income Statement Step by Step Solution
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