Northern Merchandising Company sold inventory that cost $12,000 for $20,000 cash How does this event affect the accounting equation What financial statements and accounts are affected (Assume that the perpetual inventory system is used ) ...

Northern Merchandising Company sold inventory that cost $12,000 for $20,000 cash. How does this event affect the

Question:

Northern Merchandising Company sold inventory that cost $12,000 for $20,000 cash. How does this event affect the accounting equation? What and accounts are affected? (Assume that the perpetual inventory system is used.)

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...