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Red x's please help will rate Sold is $51,000. Steritech Co. issues a credit memorandum for $5,000 ($4,900 net of the 2% discount for merchandise
Red x's please help will rate
Sold is $51,000. 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 merchandise. Illustrate the effects on the accounts and financial statements of steritech 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, cash outflows, and the cost of merchandise sold as negative amounts. a. The sale, including the cost of the merchandise sold. Balance Sheet Assets C. Liabilities + Stockholders' Equity Accounts Receivable + Inventory No Effect + Retained Earnings X -51,600 Statement of Cash Flows Income Statement No effect Sales 86,000 X Cost of goods sold -51,600 Gross profit 29,500 xStep by Step Solution
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