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 on the accounts and financial statements of recording the following transactions of Affordable Supplies Co. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases, cash outflows, and the income statement effects that reduce net income as negative amounts. Jan. 6. Sold merchandise on account, $14,000, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,400. Statement of Cash Flows Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Accounts Receivable + No Effect = No Effect + Retained Earnings Jan. 6. 14,000 5,600 Jan. 6. Statement of Cash Flows Income Statement No effect 0 Sales 14,000 Cost of goods sold -8,400 Net income 5,600 Jan. 8. Sold merchandise on account, $20,000, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $14,000. Statement of Cash Flows Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Accounts Receivable + No Effect = Accounts Receivable + Retained Earnings Jan. 8. 20,000 14,000 6,000 Jan. 8. Statement of Cash Flows Income Statement No effect Sales 20,000 Cost of goods sold 14,000 Net income 6,000 Jan. 16. Sold merchandise on account, $19,500, terms FOB shipping point, n/30. The cost of merchandise sold was $11,700. Statement of Cash Flows Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Accounts Receivable + No effect = Accounts Receivable + Retained Earnings Jan. 16. 19,500 11,700 7,800 Jan. 16. Statement of Cash Flows Income Statement No effect 0 Sales 19,500 Cost of goods sold 11,700 Net income 7,800 Jan. 18. Received check for amount due for sale on January 8. Statement of Cash Flows Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Cash + Accounts Receivable = No Effect + Common Stock Jan. 18. 19,800 -20,000 -200 Jan. 18. Statement of Cash Flows Income Statement Operating 19,800 Sales discounts -200 Jan. 19. Issued credit memorandum for $4,500 for merchandise returned from sale on January 16. The cost of the merchandise returned was $2,700. Statement of Cash Flows Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Accounts Receivable + Inventory + No Effect = No Effect + Common Stock Jan. 19. -4,500 2,700 -1,800 Jan. 19. Statement of Cash Flows Income Statement No effect Sales returns and allowances -1,800 Jan. 26. Received check for amount due for sale on January 16 less credit memorandum of January 19. Statement of Cash Flows Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Cash + Accounts Receivable = No Effect + No Effect Jan. 26. 15,000 -15,000 Jan. 26. Statement of Cash Flows Income Statement Operating 15,000 No effect Jan. 31. Paid Cashell Delivery Service $3,000 for merchandise delivered during January to customers under shipping terms of FOB destination. Statement of Cash Flows Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Cash + Accounts Payable = No Effect + Retained Earnings Jan. 31. -3,000 0 -3,000 Jan. 31. Statement of Cash Flows Income Statement Investing -3,000 Delivery expense -3,000 Jan. 31. Received check for amount due for sale of January 6. Statement of Cash Flows Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Cash + Accounts Receivable = No Effect + No Effect Jan. 31. 14,000 -14,000 0 Statement of Cash Flows Income Statement Financing 14,000 No effect 0