Question

During the year, Bassett Company paid a total of $58,000 for inventory. In one transaction, Bassett sold inventory that had cost the company $1,400 for $4,300 on accounts receivable. How much did total assets increase (decrease) as a result of this one transaction?

Answer 1

Answer:

$2,900 Increase

Explanation:

Considering the transaction

• Bassett sold inventory that had cost the company $1,400 for $4,300 on accounts receivable - Here, inventory reduces by $1,400 while accounts receivable increase by $4,300. This leaves a net impact of $2,900 (4300-1400) on total assets.

Hence the results of this one transaction is an increase of total assets by $2,900.