3, 4, & 6, please!
Scarlet Witch Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1 , 2022 , the following were the account balances of Scarlet Witch Corporation: During May 2022, the following transactions took place: May 1: Bought 200 desktop printers for $200 each on account. May 1: Bought a van, paying $7000 cash as a down payment and signed a 10 month $20000,9% note payable for the balance. The company paid $450 to have its company logo printed on the side of the van. The residual value is $7000. The old van was sold for $4000; it cost $32000 and acculumated depreciation up to the date of disposal was $30000. May 10: Sold 170 printers to Nebula Inc. on account. May 12: Oscorp agreed to sign a 90-day note receivable to replace a $1300 accounts receivable due that day. The interest rate on the 9%. May 20: Sold 7 printers to Spiderman Inc. using a VISA card to pay for the transaction. A 2.5% service fee is charged by VISA. May 22: Sold 110 printers to Clint Barton Public School on account. May 24: Returned for credit 5 damaged printers from Nebula Inc., costing $160 each. May 28: Received payment in full from Nebula Inc. for tha balance owing. May 28: Wrote off as uncollectable $3800 of accounts receivable. May 29: Paid accounts payable, $12500. May 30: Recovered an accounts receivable that was written off in April, $550. May 31: Paid operating expenses totalling $45500. May 31: Recorded depreciation on the van and the furniture \& fixtures. The company uses straight-line depreciation for the van is used for 7 years. The fumiture & fixtures are depreciated using the straight-line method over 6 years. There is no residual value on the fumiture and fixtures. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Other Information: 1) The selling price for each of the printers is $450. 2) Scarlet Witch Corporation uses the FIFO method under the perpetual inventory system to account for inventory. 3) In the past, Scarlet Witch Corporation has used the following accounts on their financial statements: Bad Debt Expense, Cost of Goods Sold, Credit Card Fee, Depreciation Expense, Gain on Sale, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable, Notes Receivable, Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period. 3) Prepare the multi-step Income Statement for the month of May 2022 . Ignore income taxes. Place your answer under "Requirement 3 " in the "Answer" tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 4) Prepare a classified Balance Sheet at at May 31, 2022. Place your answer under "Requirement 4" in the "Answer" tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 5) Assume Scarlet Witch Corporation overstated its ending inventory by $1500. How does this affect cost of goods sold, gross profit, and net income in the year it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Place your answer under "Requirement 5 " in the "Answer" tab using the drop down menus. Enter any type responses in the designated spots. 6) Assume that Scarlet Witch Corporation used the LCNRV to report inventory on the balance sheet. The NRV of $500 is less than the FIFO cost. Prepare the journal entry. Place your answer under "Requirement 6 " in the "Answer" tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. Explanations are not required
