Question

A clothing designer sold jackets costing $3000 on cash in July 2018. The designer was able...

  1. A clothing designer sold jackets costing $3000 on cash in July 2018. The designer was able to sell the jackets for 4000. What will the sale transaction do to the asset, liability, and owner’s equity sides of the balance sheet? Please show the steps.
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Answer #2

Asset increase by $ 1,000

Retained Earnings increase by $ 1,000

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