Indicate How Each Event Affects the Elements of Financial Statements

Essay

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 that Frank Company uses a perpetual inventory system.

-Whetzel Co.returned some defective merchandise it had previously purchased on account from a supplier,Jacobs Company.Jacobs Company agreed to credit Whetzel's account.