The Following merchandise transactions occurred in December, Both companies use a perpetual inventory system.
Dec 3. Kirk Ltd. Sold $480,000 of merchandise to Spok Corp, terms 2/10, n/30, fob shipping point. The cost of the merchandise sold was $320,000
Dec 5. Shipping Costs of $5,000 are paid.
Dec 8 Spok was granted a sales allowance of $25,000 for defective merchandise purchased on December 3
Dec 13. Kirk received the balance due from Spok
For each of the above transactions indicate which accounts and the amount of increase or decrease to the assets, liabilities and/or shareholders equity on the balance sheet equation FOR KIRK LTD. If there is no effect indicate by saying no effect.
Dec 3. Kirk Ltd. Sold $480,000 of merchandise to Spok Corp, terms 2/10, n/30, fob shipping point. The cost of the merchandise sold was $320,000
Dec 5. Shipping Costs of $5,000 are paid.
Dec 8 Spok was granted a sales allowance of $25,000 for defective merchandise purchased on December 3
Dec 13. Kirk received the balance due from Spok
For each of the above transactions indicate which accounts and the amount of increase or decrease to the assets, liabilities and/or shareholders equity on the balance sheet equation FOR KIRK LTD. If there is no effect indicate by saying no effect.