Sales$-$Related Transactions

The selected transactions below were completed by Affordable Supplies Co$.,$ which sells supplies primarily to wholesalers and occasionally to retail customers.

Instructions:

Illustrate the effects of each of the transactions on the accounts and financial statements of Affordable Supplies Co$.$

Enter account decreases, cash outflows, and the income statement effects that reduce gross profit or net income as negative amounts.

Jan. $6.$ Sold merchandise on account, $$14,000,$ terms FOB shipping point, $\frac{n}{e}om.$ The cost of merchandise sold was $$8,400.$

Financial Statement Effects

Balance Sheet

Assets

Liabilities

Stockholders' Equity

$+$

$=$

$=$

$+$

Jan. $6.$

Statement of Cash Flows

$3$ more Check My Work uses remaining.