3 PM christian nagr Ch 04 Homework Help Save& Exit 7 General Trial Balance Recei
ID: 2542803 • Letter: 3
Question
3 PM christian nagr Ch 04 Homework Help Save& Exit 7 General Trial Balance Receivables Schedule of Schedule of ome Receivables Payables Statement Impact on Income Payables For each transaction, indicate the impact each item had on income and the dolar amount of the change in income, if any Input decreases to net income as negative values. Upon completion, compare the amount of income with the amount reported on the income statement 40 Impact on income $11,100 under credit lerms of 1/10, n30, FOB Aug 5) Sold merchandise to Taylor Corp. for $7,000 under August 5 A4 5) The merchandse sold to Tayor had cost S4200. No impact on income rveice daned August 1 ter.of 2/10. neo. FOB destnalon, invoce dated | increases net income $ 7,000 |Decreases not nome 4,200) Aug 8) Punchased merchandise from Martin Corporation for $6,120 under credit tems of 1/10, n45, FOB shipping point No impact on income nvoice dated August & Aug 9) Paid $525 cash for shipping charges nelated to the August 5 sale to Taylor Corp Aug. 10) Taylor netumed menchandise from the August 5 sale that had sold for $200 Aug 10) The cost of the merchandse refumed by Wrighfs was $300.The merchandise was nestiored to inventory net incom 8Explanation / Answer
Transaction
Impact on income
increase (decrease) to income
1-
No impact
0
2-
Increase
7000
3-
decrease
-4700
4-
No impact
0
5-
decrease
-525
6-
decrease
-200
7-
increase
-300
8-
increase net income
800
9-
increase net income
800
10-
increase net income
0
11-
increase net income
0
12-
increase
4200
13-
decrease
-2100
14-
decrease net income
-500
15-
increase net income
0
16-
No impact
0
Transaction
Impact on income
increase (decrease) to income
1-
No impact
0
2-
Increase
7000
3-
decrease
-4700
4-
No impact
0
5-
decrease
-525
6-
decrease
-200
7-
increase
-300
8-
increase net income
800
9-
increase net income
800
10-
increase net income
0
11-
increase net income
0
12-
increase
4200
13-
decrease
-2100
14-
decrease net income
-500
15-
increase net income
0
16-
No impact
0
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