Poole Company began the 2014 accounting period with $18,300 cash, $61,400 inventory, $48,800 common stock, and $30,900 retained earnings. During the 2014 accounting period, Poole experienced the following events:

1. Sold merchandise costing $37,000 for $75,500 on account to Mables General Store.

2. Delivered the goods to Mables under terms FOB destination. Freight costs were $380 cash.

3.

Received returned goods from Mables. The goods cost Poole Company $1,910 and were sold to Mables for $3,820.

4. Granted Mables a $1,070 allowance for damaged goods that Mables agreed to keep.

5. Collected partial payment of $53,900 cash from accounts receivable.

References

Exercise 3-16 Part a Required a. Record the events in a statements model like the one shown below. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.) POOLE COMPANY Effect of Events on the Financial Statements Equity Retained Revenue Expenses Accounts Inventory Common Receivable 61,400 m 48,800 30,900 No Cash Bal 18,300 1a. 3b. Total Net Statement of Cash Income NA