The following transactions occurred during the month of November in the operation of Carol’s Cutsie Cosmetics, Inc, a wholesaler who sells to retail stores. Record each transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write a brief description in the column provided.
November 4 Purchased merchandise for $9,000 on account from International
Fragrance Corporation, terms: 3/10, n/60.
November 15 Paid shipping charges on merchandise purchased on November 4, $300.
November 16 Sold merchandise to Lacy’s Department Store on account for $4,000,
terms 2/10, n/30. The merchandise had cost Carol’s $1,500.
November 26 Received full amount due from Lacy’s Department Store
November 30 Recorded the shrinkage adjustment. The inventory on hand as determined
by taking a physical inventory at the end of November is $7,400.