Several transactions of sales and purchase activities for Genoa Department Store are described below.
A Genoa purchases shoes from Nike on credit.
B Genoa returns defective shoes to Nike before payment is made to Nike for the shoes purchased in transaction A.
C Genoa pays for the shoes purchased from Nike.
D Genoa sells shoes to its customers for cash and on credit.
E Credit customers return shoes to Genoa for a refund.
F Credit customers pay their account balances to Genoa.
REQUIRED: For each transaction described above, describe the economic effects of the transaction on the company under a periodic inventory system.

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The Answer of Several transactions of sales and purchase activities for Genoa Department Store are described below.
A Genoa purchases shoes from Nike on credit.
B Genoa returns defective shoes to Nike before payment is made to Nike for the shoes purchased in transaction A.
C Genoa pays for the shoes purchased from Nike.
D Genoa sells shoes to its customers for cash and on credit.
E Credit customers return shoes to Genoa for a refund.
F Credit customers pay their account balances to Genoa.
REQUIRED: For each transaction described above, describe the economic effects of the transaction on the company under a periodic inventory system.

Several Transactions of Sales and Purchase Activities for Genoa Department