PROBLEM 1

The following transactions occurred during the month of November in the operation of Carol's Cutsie Cosmetics, Inc, a wholesaler who sells to retail stores.Record each transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose.For any entry that impacts Retained Earnings, and a brief description in the column provided.

November 4Purchased merchandise for $9,000 on account from

International Fragrance Corporation, terms: 3/10, n/60.

• November 15Made cash sales of $300.
• November 16Sold merchandise to Lacy's Department Store on account for

$4,000, terms 2/10, n/30.The merchandise had cost Carol's $1,500.

• November 26Received full amount due from Lacy's Department Store
• November 30Recorded the shrinkage adjustment. The inventory on hand as

determined by taking a physical inventory at the end of November is $7,400.

For PROBLEM 1: Carol's Cutsie Cosmetics Transactions Record Shareholder's Assets Liabilities Equity Date Cash Accounts Merchandising Accounts Retained Description Receivable Inventory Payable Earnings to Retained Earnings Nov- 04 Nov- 15 Nov- 16 Nov- 26 Nov- 30