Ms. Spencer, a fifth-grade teacher, gives a blue plastic sta…

Ms. Spencer, a fifth-grade teacher, gives a blue plastic star to each student who achieves an “A” on a math or spelling test. At the end of the semester, students can even exchange their stars for prizes. Ms. Spencer’s strategy best illustrates an application of:

On January 1st, New Black Company sells merchandise on accou…

On January 1st, New Black Company sells merchandise on account for $1,800 to Diamond Company with credit terms of 2/10, n/30. The merchandise costs New Black Company $900. Diamond Company returns $600 of damaged merchandise (Cost to New Black $300) along with a check to settle the account within the discount period. To record the receipt of payment, the following tabular analysis by New Black Company will show: ​ Assets = Liabilities + Stockholders’ Equity ​ ​ ​ ​   ​ Retained Earnings​ ​ ​ Cash + Accounts Receivable + Inventory = Accounts Payable + Common Stock + Rev. – Exp. – Div. ​