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Question - M and N Sporting Goods reports these selected transactions for the month of July:
July 9: Issued invoice No. 159 for a sale on account to Evans Company, $4,600, terms 1/10 n/30. The cost of the merchandise was $2,700.
July 10: Issued invoice No. 160 for a sale on account to Sails and Boats, $5,700, terms 2/15 n/45. The cost of the merchandise was $2,450.
July 20: Issued a credit memo to Sails and Boats for $2,800 for merchandise returned. The cost of the returned merchandise was $1,200.
Record the above transactions in either the sales journal or the general journal. M and N Sporting Goods has a perpetual inventory system.
What effect would this transaction have on pretax income, total assets and total liabilities during 2018, 2019 and 2020
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