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During Year 1, Hardy Merchandising Company purchased $27,000 of inventory on account. Hardy sold inventory on account that cost $20,300 for $30,400. Cash payments on accounts payable were $16,900. There was $27,100 cash collected from accounts receivable. Hardy also paid $4,700 cash for operating expenses. Assume that Hardy started the accounting period with $21,500 in both cash and common stock. Required a. Identify the events described in the preceding paragraph and show them in a horizontal statements model. The first event is recorded as an example. b. What is the balance of accounts receivable at the end of Year 1
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During Year 1, Hardy Merchandising Company purchased $27,000 of inventory on account. Hardy sold inv...
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