Sales were $64,000. Cost of merchandise sold was 60% of its sales price. 60% of the sales were on open account. [Note: Record the sales transaction first and the expense transaction second]
Tell what accounts are affected in order, and by how much (values can be positive or negative). The answer choices are Cash, accounts receivable, inventory, prepaid rent, fixtures and equipment, accounts payable, interest payable, wages payable, notes payable, paid-in capital, retained earnings, leave blank. Some choices may show up more than once.