Given the following two T-accounts,what can definitely be said about this company's transactions?
$\begin{array}{ccc}
\text { Cash } & \text { Acc. Receivable } \
\text { (1) } 17,700 \mid700(2) & \text { (3) } 1,400
\mid 1,900(4) \
\text { (3) } 400\mid700(5) & \mid\
(4) 1,900\mid&\mid
\end{array}$
A)Transaction 1 indicates the company sold merchandise for $17,700.
B)Transaction 2 indicates the company bought merchandise for $700.
C)Transaction 3 indicates the company returned merchandise for $1,000.
D)Transaction 4 indicates the company received $1,900 from its credit customers.
E)Transaction 5 indicates the company paid $700 in salaries.

Question

Given the following two T-accounts,what can definitely be said about this company's transactions? 
$\begin{array}{ccc}
\text { Cash } &  \text { Acc. Receivable } \
\text { (1) } 17,700 \mid700(2) & \text { (3) } 1,400
\mid 1,900(4) \
\text { (3) } 400\mid700(5) & \mid\
(4) 1,900\mid&\mid
\end{array}$
A)Transaction 1 indicates the company sold merchandise for $17,700.
B)Transaction 2 indicates the company bought merchandise for $700.
C)Transaction 3 indicates the company returned merchandise for $1,000.
D)Transaction 4 indicates the company received $1,900 from its credit customers.
E)Transaction 5 indicates the company paid $700 in salaries.

Quizplus · Accepted Answer

Transaction 1: This indicates a cash sale of $17,700 which is recorded in the Cash account.
Transaction 2: There is no information to support this statement.
Transaction 3: This transaction is not related to the Accounts Receivable account.
Transaction 4: This transaction indicates the company received $1,900 from its credit customers which is recorded in the Accounts Receivable account.
Transaction 5: There is no information to support this statement.

Given the Following Two T-Accounts,what Can Definitely Be Said About