Indicate How Each Event Affects the Elements of Financial Statements

question 2

Essay

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. If an event increases one account and decreases another account equally within the same element (such as an asset exchange event), record I/D. If an event has no impact on the element, record NA. You do not need to enter amounts. Assume that Whetzel Company uses a perpetual inventory system.Increase = I Decrease = D Not Affected = NAAfter a physical count of its inventory, Whetzel Company discovered that $400 of inventory is missing. Show how the required adjusting entry would affect Whetzel Company's statements.

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Definitions:

Shipping Terms

Conditions agreed upon by the buyer and seller regarding the delivery of goods, including the mode of transport, payment, and point of delivery.

Technical Title

A specific title that accurately reflects the technical qualifications, expertise, or knowledge required for a particular job or position.

Risk Of Loss

The risk that an asset might be destroyed, damaged, or lost, affecting its value.

Ordinary Course

A term used in business and law to refer to the normal conduct of business and operations.