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The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for ( $ 175,000 ) (assume
The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for \\( \\$ 175,000 \\) (assume Marchetti uses a perpetual inventory system); (2) paid \\( \\$ 46,000 \\) in salaries to employees for work performed during the month; (3) sold inventory on account to customers for \\( \\$ 230,000 \\) that had a cost of \\( \\$ 132,000 \\); (4) collected \\( \\$ 210,000 \\) in cash from credit customers; and (5) paid on account to suppliers of inventory \\( \\$ 155,000 \\). Analyze each transaction and show the effect of each on the accounting equation for a corporation. Note: Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation
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