Use a tabular summary to record the following transactions for Blossom Company using a perpetual inventory system. Include margin explanations for the changes in revenues and expenses. (a) (b) (c) On March 2, Blossom Company sold $640,000 of merchandise to Crane Company on account. The cost of the merchandise sold was $432,000. On March 6, Crane Company returned $112,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $75,200. On March 12, Blossom Company received the balance due from Crane Company. Decreases in assets, liabilities, or stockholders' equity require a negative sign or parentheses. Increases in expenses require a negative sign or parentheses. Reductions in revenues require a negative sign or parentheses.
Use a tabular summary to record the following transactions for Blossom Company using a perpetual inventory system. Include margin explanations for the changes in revenues and expenses. (a) (b) (c) On March 2, Blossom Company sold $640,000 of merchandise to Crane Company on account. The cost of the merchandise sold was $432,000. On March 6, Crane Company returned $112,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $75,200. On March 12, Blossom Company received the balance due from Crane Company. Decreases in assets, liabilities, or stockholders' equity require a negative sign or parentheses. Increases in expenses require a negative sign or parentheses. Reductions in revenues require a negative sign or parentheses.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Use a tabular summary to record the following transactions for Blossom Company using a perpetual inventory system. Include margin
explanations for the changes in revenues and expenses.
(a)
(b)
(c)
On March 2, Blossom Company sold $640,000 of merchandise to Crane Company on account. The cost of the merchandise
sold was $432,000.
On March 6, Crane Company returned $112,000 of the merchandise purchased on March 2. The cost of the merchandise
returned was $75,200.
On March 12, Blossom Company received the balance due from Crane Company.
Decreases in assets, liabilities, or stockholders' equity require a negative sign or parentheses.
Increases in expenses require a negative sign or parentheses.
Reductions in revenues require a negative sign or parentheses.
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