The following transactions occurred during the month of November in 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 $7,000 on account from International Fragrance Corporation, terms: 3/10, 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 Wonderful Buy’s $90. 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, $250 November 30 Recorded the shrinkage adjustment. The inventory on hand as determined by taking a physical inventory at the end of November is $3,200.

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Description: The following transactions occurred during the month of November in 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following transactions occurred during the month of November in 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 $7,000 on account from International

Fragrance Corporation, terms: 3/10, 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

Wonderful Buy’s $90.

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,

$250

November 30 Recorded the shrinkage adjustment. The inventory on hand as determined

by taking a physical inventory at the end of November is $3,200.

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