Consider how accountant will handle transaction

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Reference no: EM131948479

A firm just made a $1,000,000.00 sale to a retail chain. The firm will be 50.00% in cash today, and then pay the remainder in 30 days (a receivable for the firm). The firm fills the sale with $400,000.00 in inventory. Consider how an accountant will handle this transaction.

a. Revenues will be adjusted by _______________.

b. Accounts receivable will be adjusted by _______________.

c. Cash will be adjusted by ______________.

d. Inventory will be adjusted by ______________.

e. If COGS is 40% of sales, COGS will be adjusted by _______________.

Reference no: EM131948479

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