Wash it yourself Ltd. sells washing machines. At December 31, 2018, wash it yourself Ltd. inventory amounted to $150,000. During the first week of January 2018, the company made only and one sale. These transactions were as follows: purchase one C Purchased 40 machines from Wash Experts. The total cost of these machines was $38,000 Discount terms 3/10, n/60. Jan. 5 Sold 22 machines on account to Home supply Ltd. The total sales price The total cost of these 22 units was $20,800. was $55,500. Jan. 12 Wash it yourself Ltd. has a full-time accountant and a computer-based accounting system. Its records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Instructions Briefly describe the operating cycle of a merchandising company. Identify the assets and 1. liabilities directly affected by this cycle. (5 points) Wash it yourself Ltd. sells washing machines. At December 31, 2018, wash it yourself Ltd. inventory amounted to $150,000. During the first week of January 2018, the company made only and one sale. These transactions were as follows: purchase one C Purchased 40 machines from Wash Experts. The total cost of these machines was $38,000 Discount terms 3/10, n/60. Jan. 5 Sold 22 machines on account to Home supply Ltd. The total sales price The total cost of these 22 units was $20,800. was $55,500. Jan. 12 Wash it yourself Ltd. has a full-time accountant and a computer-based accounting system. Its records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Instructions Briefly describe the operating cycle of a merchandising company. Identify the assets and 1. liabilities directly affected by this cycle. (5 points)