Poole Company began the 2014 accounting period with $19,500 cash, $61,900 inventory, $48,400 common stock, and $33,000 retained earnings. During the 2014 accounting period, Poole experienced the following events: 1. Sold merchandise costing $36,600 for $75,800 on account to Mables General Store. 2. Delivered the goods to Mables under terms FOB destination. Freight costs were $335 cash. 3. Received returned goods from Mables. The goods cost Poole Company $1,900 and were sold to Mables for $3,970. 4. Granted Mables a $1,000 allowance for damaged goods that Mables agreed to keep. 5. Collected partial payment of $52,000 cash from accounts receivable.

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 Assets Common Retained Revenue Expenses Accounts Inventory Stock Receivable No Cash Earnings 33,000 Bal 19,500 61,900 48,400 1b. 3a 3b Total Net Statement of Cash Flows Income NA