Indicate How Each Event Affects the Financial Statements

question 85

Essay

Indicate how each event affects the financial statements. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA.You do not need to enter amounts.Increase = I Decrease = D Not Affected = NAKelly Company sells goods to customers with a three-year warranty. On December 31, Year 1, Kelly made the appropriate year-end adjustment to record the warranty expense related to the goods sold during the year.

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Definitions:

Employment Terms

The conditions and details of employment agreed upon by an employer and employee, including duties, compensation, and duration.

Disparate Treatment

Unequal behavior toward someone because of a protected characteristic under the law, leading to discrimination.

Prima Facie Case

A case in which the evidence before trial is sufficient to prove the case unless there is significant contradictory evidence presented.

Nondiscriminatory Reason

A justification for a particular decision or action that is not based on prejudice or bias related to race, color, religion, sex, or national origin.