Required information [The following information applies to the questions displayed below.] The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. October 1 Sold merchandise for $2,000, with credit terms n/30, invoice dated October 1. The cost of the merchandise is $1,150. October 6 The customer in the October 1 sale returned $200 of merchandise for full credit. The merchandise, which had cost $115, is returned to inventory. October 9 Sold merchandise for $950 cash. Cost of the merchandise is $650. October 30 Received payment for the amount due from the October 1 sale less the return on October 6. Use the above transactions, to analyze each transaction by indicating its effects on the components of the income statement- specifically, identify the accounts and amounts (including + or -) for each transaction. Income Statement Components Sales (gross) Sales discounts Sales returns and allowances Net sales Cost of goods sold October 1 Increase or Decrease Amount October 6 Increase or Decrease Amount October 9 Increase or Decrease Amount October 30 Increase or Decrease Amount
Required information [The following information applies to the questions displayed below.] The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. October 1 Sold merchandise for $2,000, with credit terms n/30, invoice dated October 1. The cost of the merchandise is $1,150. October 6 The customer in the October 1 sale returned $200 of merchandise for full credit. The merchandise, which had cost $115, is returned to inventory. October 9 Sold merchandise for $950 cash. Cost of the merchandise is $650. October 30 Received payment for the amount due from the October 1 sale less the return on October 6. Use the above transactions, to analyze each transaction by indicating its effects on the components of the income statement- specifically, identify the accounts and amounts (including + or -) for each transaction. Income Statement Components Sales (gross) Sales discounts Sales returns and allowances Net sales Cost of goods sold October 1 Increase or Decrease Amount October 6 Increase or Decrease Amount October 9 Increase or Decrease Amount October 30 Increase or Decrease Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![es
!
Required information
[The following information applies to the questions displayed below.]
The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the
gross method.
October 1 Sold merchandise for $2,000, with credit terms n/30, invoice dated October 1. The cost of the
merchandise is $1,150.
October 6
The customer in the October 1 sale returned $200 of merchandise for full credit. The merchandise,
which had cost $115, is returned to inventory.
October 9 Sold merchandise for $950 cash. Cost of the merchandise is $650.
October 30 Received payment for the amount due from the October 1 sale less the return on October 6.
Use the above transactions, to analyze each transaction by indicating its effects on the components of the income statement-
specifically, identify the accounts and amounts (including + or -) for each transaction.
Income Statement Components
Sales (gross)
Sales discounts
Sales returns and allowances
Net sales
Cost of goods sold
Gross profit
October 1
Increase or
Decrease
Amount
October 6
Increase or
Decrease
Amount
October 9
Increase or
Decrease
Amount
October 30
Increase or
Decrease
Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fef938e3e-2a30-427f-8966-e680faad1b15%2Fe3679c46-689e-40db-9fc6-8089e6b03f13%2Ffx78rli_processed.jpeg&w=3840&q=75)
Transcribed Image Text:es
!
Required information
[The following information applies to the questions displayed below.]
The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the
gross method.
October 1 Sold merchandise for $2,000, with credit terms n/30, invoice dated October 1. The cost of the
merchandise is $1,150.
October 6
The customer in the October 1 sale returned $200 of merchandise for full credit. The merchandise,
which had cost $115, is returned to inventory.
October 9 Sold merchandise for $950 cash. Cost of the merchandise is $650.
October 30 Received payment for the amount due from the October 1 sale less the return on October 6.
Use the above transactions, to analyze each transaction by indicating its effects on the components of the income statement-
specifically, identify the accounts and amounts (including + or -) for each transaction.
Income Statement Components
Sales (gross)
Sales discounts
Sales returns and allowances
Net sales
Cost of goods sold
Gross profit
October 1
Increase or
Decrease
Amount
October 6
Increase or
Decrease
Amount
October 9
Increase or
Decrease
Amount
October 30
Increase or
Decrease
Amount
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