Several Sales Transactions and Purchasing Activities for Yu Company Are

question 183

Essay

Several sales transactions and purchasing activities for Yu Company are described below. Yu Company uses a perpetual inventory system.
-Refer to the information provided for Yu Company. For each of the items above, describe its economic effects on the company's accounting equation.
A)Yu Company purchased merchandise from Mia Company on credit.
B)Yu Company returned to Mia Company defective merchandise before payment is made.
C)Yu Company pays for the merchandise purchased from Mia Company.
D)Yu Company sells merchandise to its customers for cash and on credit.
E)Credit customers returned merchandise to Yu Company for a refund.
F)Credit customers pay their account balances to Yu Company.

• A)Yu Company purchased merchandise from Mia Company on credit.
• B)Yu Company returned to Mia Company defective merchandise before payment is made.
• C)Yu Company pays for the merchandise purchased from Mia Company.
• D)Yu Company sells merchandise to its customers for cash and on credit.
• E)Credit customers returned merchandise to Yu Company for a refund.
• F)Credit customers pay their account balances to Yu Company.

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Definitions:

Sales Discounts

Reductions in the price of goods or services offered to customers, typically in exchange for early payment.

Expense Accounts

Accounts used to track the costs incurred in a business's operational activities, not directly tied to the production of goods or services.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs directly associated with the production of goods or services.

Merchandising

Merchandising involves purchasing, displaying, and selling products to consumers, with strategies that aim to boost sales and profitability.