Print ltem\ Purchase-Related Transactions credit memorandum for

$5,000

for merchandise that was damaged in shipment. Butler

C0

. agreed to keep the damaged merchandise. 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.\ Financial Statement Effects\ Statement of Cash Flows

urchase Related Transactions iteritech Co, a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms n/30. The cost of the merchandise sold is $51,600. Steritech Co. issues a redit memorandum for $5,000 for merchandise that was damaged in shipment. Butler Co. agreed to keep the damaged merchandise. Illustrate the effects on the accounts and inancial statements of Butter CO. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Fnter account decreases and ach outflows as negative amounts