$4$ HW Exercises

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Use the following information for the Quick Studies below.

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The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method.

October $1$ Sold merchandise for $$2,200,$ with credit terms $\frac{n}{30},$ invoice dated October $1.$ The cost of the merchandise is $$1,250.$

October $6$ The customer in the October $1$ sale returned $$220$ of merchandise for full credit. The merchandise, which had cost" $$125,$ is returned to inventory.

October $9$ Sold merchandise for $$1,050$ cash. Colit of the merchandise is $$730.$

October $30$ Received payment for the amount due from the October $1$ sale less the return on October $6.$

QS $4-12($Algo$)$ Effects of sales transactions on income statement LO P$2$

Use the above transactions, to analyze each transaction by indicating its effects on the components of the income statementspecifically, identify the accounts and amounts $($including $+$ or $-)$ for each transaction.

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