Indicate How Each Event Affects the Financial Statements

question 31

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 dollar amounts.
Increase = I Decrease = D Not Affected = NA
Gable Company collected a receivable due from a credit card company; the credit card fee had previously been recognized when the sale was recorded. Show the effect of the collection of the receivable on Gable's financial statements.

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Definitions:

Immigrant Family

Refers to a family that has moved from one country to another for reasons such as seeking better opportunities, escaping conflicts, or family reunification.

Housekeeper

An individual responsible for managing household tasks such as cleaning, cooking, and maintaining the home environment.

Family Earnings

The combined total income generated by all working members of a family unit.

Political Machines

Organizations led by a boss or a small group that commands enough votes to maintain political and administrative control of a city, county, or state, often involved in corruption and bribery.