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.discovered that a recent shipment of merchandise it had purchased was not of the same quality it had expected.The seller agreed to grant Whetzel an allowance of $250.Whetzel had not yet paid the amount owed on the shipment.