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Merchandise with a List Price of $7,500 and a Cost

Question 123

Essay

Merchandise with a list price of $7,500 and a cost of $7,000 is sold on account,terms 1/10,n/30.Prior to payment,merchandise with a list price of $1,000 and a cost of $800 is returned.The correct amount is paid within the discount period.
a.
Statement of Cash Flows
Income Statement
Assets =
Liabilities
+ Stockholders' Equity
Cash
Accounts Receivable
Merchandise Inventory
Accounts Payable
Capital Stock
Retained Earnings
b.
Statement of Cash Flows
Income Statement
Assets =
Liabilities
+ Stockholders' Equity
Cash
Accounts Receivable
Merchandise Inventory
Accounts Payable
Capital Stock
Retained Earnings
c.
Statement of Cash Flows
Income Statement

Correct Answer:

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Assets = Liabilities + Stockholders' Equ...

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