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22108 Accounting and Accountability - Spring 2025 1. PRACTICE Final Exam - 22108 - Autumn 2023

Multiple dropdown selections

SneakElite received payment from the wholesale customer Culture Kings who owed 40% of last month's sales of $48,250   Select the flows and accounts that would be used to record this transaction. Please select a drop-down selection for every box.   Assets = Liabilities + Equity Cash [ Select ] Accounts Receivable Equipment Digital Assets Account not required Cash Inventory No account required [ Select ] Accounts Receivable Expenses Share equity No account required Sales Revenues [ Select ] - 19,300 - 48,250 + 19,300 + 48,250 0 [ Select ] - 19,300 - 38600 - 48250 0 [ Select ] + 19300 0 - 48250 - 19300 + 48250 [ Select ] + 19300 0 - 19300 - 38600 - 48250 + 28950 + 48250

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To begin, restate what the transaction describes: Culture Kings owes SneakElite 40% of last month’s sales, which amounts to 0.40 × 48,250 = 19,300. When the wholesale customer pays, Cash increases and Accounts Receivable decreases. No other asset, liability, or equity accounts are involved in this particular collection. First dropdown (the asset side): which asset account is affected by the receipt of cash? Selecting Cash is correct because the company is rec......Login to view full explanation

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