Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms 2/10, n/30. The cost of the merchandise sold is $51,600. 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			=	Liabilities	+	Stockholders' Equity
			+		=		+
		fill in the blank 5		fill in the blank 6		fill in the blank 7		fill in the blank 8
Statement of Cash Flows					Income Statement
	fill in the blank 10						fill in the blank 12

b. The credit memorandum.

	Balance Sheet
		Assets			=	Liabilities	+	Stockholders' Equity
			+		=		+
		fill in the blank 5		fill in the blank 6		fill in the blank 7		fill in the blank 8
Statement of Cash Flows					Income Statement
	fill in the blank 10						fill in the blank 12

c. The receipt of the check for the amount due from Butler Co.

	Balance Sheet
		Assets			=	Liabilities	+	Stockholders' Equity
			+		=		+
		fill in the blank 5		fill in the blank 6		fill in the blank 7		fill in the blank 8
Statement of Cash Flows					Income Statement
	fill in the blank 10						fill in the blank 12