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 25

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. $\text { Increase }=\mathrm{I} \quad \text { Decrease }=\mathrm{D} \quad \text { No Effect }=\mathrm{N}$
After having shipped merchandise to a customer, Lowe Co. received a complaint about some minor defects. Lowe agreed to allow a price reduction of $500. The merchandise had been sold to the customer on account, and the account had not been collected yet. Show how the transaction would affect Lowe'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:

Mitosis

The division of the cell nucleus resulting in two daughter nuclei, each with the same number of chromosomes as the parent nucleus; mitosis consists of prophase, prometaphase, metaphase, anaphase, and telophase. Cytokinesis usually overlaps the telophase stage.

Homologous Chromosomes

Pairs of chromosomes in a diploid organism that have the same gene sequence, inherited from each parent, and pair up during meiosis.

Staining Patterns

Distinctive appearances that cells or cellular components exhibit after being stained with specific dyes, helping in identification.

Centromere Positions

The location of the centromere on a chromosome, influencing chromosome shape during cell division.