Indicate How Each Event Affects the Elements of Financial Statements $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$

question 34

Short Answer

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. You do not need to enter amounts. Assume use of a perpetual inventory system. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
On May 1, Houston Co. sold goods to a customer on account. On May 9, before payment had been received from the customer, the customer returned some of the goods. The returned goods cost Houston $1,000, and the customer had been charged $1,500. Show the effects of the return of goods on Houston's financial statements. $\begin{array} {| l| l| l| l| l| l| l| }\text { Assets}&\text { Liabilities }&\text {Equity}&\text { Revenues}&\text { Expenses }&\text { Net Income }&\text { Cash }\\\hline &&&&&\end{array}$

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Definitions:

Cohesive

Characterized by unity and consistency within a group of elements or parts, often referring to the coherence in written or spoken discourse.

Manifest

Apparent or observable.

Violent Television

Refers to television programming that includes scenes of physical or emotional violence, which can impact viewers' perceptions and behavior.

Insensitivity

A lack of sensitivity or the inability to perceive and respond to differences or changes.