Galaxy Company sold merchandise costing $3700 for $6400 cash. The merchandise was later returned by the customer for a refund. The company uses the perpetual inventory system. What effect will the sales return have on the financial statements? (Consider the effects of both parts of this event.)
A. Total assets decrease by $6400 and total stockholders' equity decreases by $3700.
B. Total assets and total stockholders' equity decrease by $2700.
C. Total assets and total stockholders' equity decrease by $6400.
D. Total assets and total stockholders' equity increase by $2700.
Answer: B
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What will be an ideal response?
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A long-term care lapse notice must be delivered to both the applicant and
secondary addressee beneficiary personal physician MIB