Answer B

Comprehensive Problem 7 (Part Level Submission On December 1, 2014, Havenhill Company had the following account balances Debits Credits $18,200 Cash $3,000 2,000 Accumulated Depreciation-Equipment Notes Receivable Accounts Receivable 7,500 Accounts Payable 6,100 50,000 16,000 Common Stock Inventory 1,600 Retained Earnings Prepaid Insurance 14,200 28,000 Equipment $73,300 $73,300 During December, the company completed the following transactions. Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed) 12 Purchased merchandise on account from Brown Co. $12,000, terms 1/10, n/30. 17 Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000. 19 Paid salaries $2,200. 22 Paid Brown Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 31 Received $2,700 cash from customers in payment of account (no discount allowed)