Chapter 11, Problem 37E

Analyzing the Accounts

Casey Company uses a perpetual inventory system and engaged in the following transactions:

a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000.

b. Collected accounts receivable in the amount of $752,600.

c. Purchased goods on credit in the amount of $574,300.

d. Paid accounts payable in the amount of $536,200.

Required:

Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.