Sales and Purchase-Related Transactions for Seller and Buyer 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 income statement effects that reduce gross profit as negative amounts. The following selected transactions were completed during June between Snipes Company and Beejoy Company: Requirements: 1. Illustrate the effects of each of the transactions on the accounts and financial statements of Snipes Company. June 8. Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $10,000. Snipes Company paid transportation costs of $400 for delivery of the merchandise. June 8. Statement of Cash Flows Assets Balance Sheet Liabilities + Stockholders' Equity + Income Statement June 12. Beejoy Company returned merchandise with a selling price of $5,000 ($4,900 net of discount) purchased on June 8 from Snipes Company. The cost of the merchandise returned was $3,000. June 12. Statement of Cash Flows Assets Balance Sheet Liabilities + Stockholders' Equity Income Statement