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The Olive Finger Gardener is a retail store that sells plants, soil, and decorative pots. On October 31, 2018, the firm’s general ledger contained the accounts and balances that appear below.
ACCOUNTS AND BALANCES
Cash $5,800 Dr. Accounts Receivable 2,700 Dr. Allowance for Doubtful Accounts 53 Cr. Merchandise Inventory 11,400 Dr. Supplies 1,210 Dr. Prepaid Advertising 1,080 Dr. Store Equipment 8,160 Dr. Accumulated Depreciation—Store Equipment 1,510 Cr. Office Equipment 1,660 Dr. Accumulated Depreciation—Office Equipment 290 Cr. Accounts Payable 2,635 Cr. Social Security Tax Payable 440 Cr. Medicare Tax Payable 97 Cr. Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Beth Argo, Capital 26,087 Cr. Beth Argo, Drawing 20,100 Dr. Sales 90,548 Cr. Sales Returns and Allowances 1,110 Dr. Purchases 46,700 Dr. Purchases Returns and Allowances 440 Cr. Rent Expense 6,100 Dr. Telephone Expense 600 Dr. Salaries Expense 14,200 Dr. Payroll Taxes Expense 1,280 Dr. Income Summary Supplies Expense Advertising Expense Depreciation Expense—Store Equipment Depreciation Expense—Office Equipment Uncollectible Accounts Expense
ADJUSTMENTS
a.-b. Merchandise inventory on October 31, 2018, is $12,421.
Required:
Analyze:
By what amount were the assets of the business affected by adjustments?
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