Bali Sales Company experienced the following events: 1. Purchased merchandise inventory for cash. 2. Purchased merchandise inventory

Question:

Bali Sales Company experienced the following events:
1. Purchased merchandise inventory for cash.
2. Purchased merchandise inventory on account.
3. Returned merchandise purchased on account.
4. Sold merchandise inventory for cash. Label the revenue recognition 4a and the expense recognition 4b.
5. Paid cash on accounts payable not within the discount period.
6. Sold merchandise inventory on account. Label the revenue recognition 6a and the expense recognition 6b.
7. Paid cash for selling and administrative expenses.
8. Paid cash for transportation-in.
9. Collected cash from accounts receivable.
10. Paid cash for transportation-out.
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. The first event is recorded as an example.
Bali Sales Company experienced the following events:
1. Purchased merchandise inventory
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Related Book For  answer-question

Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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