he operatiIUN uy, Ine, transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write a brief description in the column provided. November 4 Purchased merchandise for $5,000 on account from International Fragrance Corporation, terms: 2/10, n/60. November 16 Sold merchandise to a customer on account for $6,500, terms 2/10, n/30. The merchandise had cost Wonderful Buy's $3,200. November 18 Sold merchandise to a customer for cash, $850. The merchandise had cost Wonderful Buy's $350. November 19 Customer returned $200 of the merchandise from the sale on November 18 and was given a refund. The merchandise had cost Wonder Buy's $95. November 26 Received full amount due from the customer for the sale of November 16. November 27 Paid shipping charges on merchandise purchased on November 4, $200 November 30 Recorded the shrinkage adjustment. The inventory on hand as determined by taking a physical inventory at the end of November is $3,300. 1 Name Date For question #1a, b, and c: Assets = Liabilities + Stockholders' Equity Accounts Merchandise Accounts Retained Description of Date Cash Receivable | Inventory Payable Earnings Retained Earnings transaction 11/4 11/16 11/18 11/19 11/26 11/27 11/30
he operatiIUN uy, Ine, transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write a brief description in the column provided. November 4 Purchased merchandise for $5,000 on account from International Fragrance Corporation, terms: 2/10, n/60. November 16 Sold merchandise to a customer on account for $6,500, terms 2/10, n/30. The merchandise had cost Wonderful Buy's $3,200. November 18 Sold merchandise to a customer for cash, $850. The merchandise had cost Wonderful Buy's $350. November 19 Customer returned $200 of the merchandise from the sale on November 18 and was given a refund. The merchandise had cost Wonder Buy's $95. November 26 Received full amount due from the customer for the sale of November 16. November 27 Paid shipping charges on merchandise purchased on November 4, $200 November 30 Recorded the shrinkage adjustment. The inventory on hand as determined by taking a physical inventory at the end of November is $3,300. 1 Name Date For question #1a, b, and c: Assets = Liabilities + Stockholders' Equity Accounts Merchandise Accounts Retained Description of Date Cash Receivable | Inventory Payable Earnings Retained Earnings transaction 11/4 11/16 11/18 11/19 11/26 11/27 11/30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:the operation of Wonderful Buy, Inc, a retailer of electronic merchandise. Record each
transaction listed below to show its impact on the accounting equation in the table
provided on the next page for that purpose. For any entry that impacts Retained
Earnings, write a brief description in the column provided.
November 4 Purchased merchandise for $5,000 on account from International
Fragrance Corporation, terms: 2/10, n/60.
November 16 Sold merchandise to a customer
account for $6,500,
terms 2/10, n/30. The merchandise had cost Wonderful Buy's $3,200.
November 18 Sold merchandise to a customer for cash, $850. The merchandise had cost
Wonderful Buy's $350.
November 19 Customer returned $200 of the merchandise from the sale on
November 18 and was given a refund. The merchandise had cost
Wonder Buy's $95.
November 26 Received full amount due from the customer for the sale of
November 16.
November 27 Paid shipping charges on merchandise purchased on November 4,
$200
November 30 Recorded the shrinkage adjustment. The inventory on hand as determined
by taking a physical inventory at the end of November is $3,300.
1
Name
Date
For question #la, b, and c:
Assets = Liabilities + Stockholders' Equity
Accounts
Merchandise
Accounts
Retained
Description of
Receivable | Inventory
Retained Earnings
transaction
Date
Cash
Payable
Earnings
11/4
11/16
11/18
11/19
11/26
11/27
11/30
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