Sold merchandise inventory on account

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Reference no: EM13933367

Dahl Sales Company experienced the following events:

1. Purchased merchandise inventory on account. 
2. Sold merchandise inventory for cash. Label the revenue recognition 2a and the expense recognition 2b. 
3. Purchased merchandise inventory for cash. 
4. Returned merchandise purchased on account. 
5. Sold merchandise inventory on account. Label the revenue recognition 5a and the expense recognition 5b. 
6. Paid cash on accounts payable not within the discount period.
7. Paid cash for transportation in. 
8. Paid cash for selling and administrative expenses. 
9. Paid cash for transportation out. 
10. Collected cash from accounts receivable. 

Required: 

Identify each event as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each event affects the financial statements by placing a + for increase, - for decrease, or NA for not affected under each of the components in the following statements model. Assume the use of the perpetual inventory system. 

951_264-B-A-M-B (1292).png

The first event is recorded as an example.

Reference no: EM13933367

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