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. Balance Sheet Assets Liabilities + Cash Accounts Receivable No Effect No Effect June 8. -400 18,250 -10,000 Statement of Cash Flows Operating -400 Sales Cost of goods sold Delivery expense Gross margin Stockholders' Equity Retained Earnings 7,850 Income Statement 18,250 -10,000 400 7,850 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. Balance Sheet Assets Liabilities + Stockholders' Equity Accounts Receivable + Inventory + Est. Return Inventory Cust. Refunds Payable + Retained Earnings June 12. -4,900 3,000 -3,000 -4,900 3,100 Statement of Cash Flows Income Statement No effect No effect