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s/blackboard.eau.edu/webapps/assessment/take/launchjsp?course assessment id 499551 18course_id- 445464 18new attempt- 18 QUESTION 18 Cash R Note Cormon Retained eStock Earn (2,000) (2000) 2,000 (2,000) 2,000 2,000 (2,000) 2,000 2,000 (2,000) (2,000) ?? ?? (2,000) 700 D 2,000) The inventory that ZZ Company sold in the prior question had been purchased by ZZ for $2,000 Which of the following shows how ZZ would recognize the cost of goods sold for this sale O D QUESTION 19 DDS Company purchased inventory with shipping terms FOB shipping point DDS paid $600 to have the goods delivered to its warehouse. Which of the following correctly shows the effect of the delivery fee on DDS horizontal statements model? Accts. Common |Retained CashARInventory Payable StockEarnin Revenues Expenses Income Click Save and Submit to save and submit. Click Save All Anscers to save all answers.

Solution

Question 18.

Answer is C.

The cost of goods sold will affect, the inventory , retaied earnings and the expenses columns.

1. Invetory will be reduced.

2. Retained earnings will be reduced due to the cost.

3. Expenses will increase

4. Net income will come down due to the cost (expense).