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A firm just made a $1,000,000.00 sale to a retail chain. The firm will be 50.00%...

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Finance

A firm just made a $1,000,000.00 sale to a retail chain. Thefirm will be 50.00% in cash today, and then pay the remainder in 30days (a receivable for the firm). The firm fills the sale with$400,000.00 in inventory. Consider how an accountant will handlethis transaction.

A.) Revenues will be adjusted by ___________________

B.) Accounts receivable will be adjusted by ______________

C.) Cash will be adjusted by ________________

D.) Inventory will be adjusted by _________________

E.) If COGS is 40% of sales, COGS will be adjusted by_________________

Answer & Explanation Solved by verified expert
4.2 Ratings (712 Votes)
When company makes sales to customer then at the most 5 accounts would be adjusted Sales revenue is adjusted for the amount of sales cash or accounts receivable would increase depending on whether the sale is on cash or    See Answer
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