The following transactions occurred during the month of November in the operation of Carol’s Cutsie Cosmetics, Inc, a wholesaler who sells to retail stores. Record each transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write a brief description in the column provided.

• November 4 Purchased merchandise for $9,000 on account from

International Fragrance Corporation, terms: 3/10, n/60.

• November 15 Made cash sales of $300.
• November 16 Sold merchandise to Lacy’s Department Store on account for

$4,000, terms 2/10, n/30. The merchandise had cost Carol’s $1,500.

• November 26 Received full amount due from Lacy’s Department Store

• November 30 Recorded the shrinkage adjustment. The inventory on hand as

determined by taking a physical inventory at the end of November is $7,400.

For Problem 1:

Carol’s Cutsie Cosmetics Transaction Record

	assets			=	liabilities	+	shareholders equity
date	cash	accounts receivable	merchandise inventory		accounts payable		retained earnings	description of retained earning transacitions
11/4
11/15
11/16
11/26
11/30

Answer rating: 100% (QA)

Answer Note Cost of Goods Sold on Nov 15 Cash sale is not given hence not deducted from Invent... View the full answer