ACC 101 Ater graduating from with the most valuable degree in Accounting, Michelle and Mary join together to form a new partnership named The Vintage Audio Company VAC), Thoy sell two items to a specialty market 8 Track Tapes (8TT), and Cassette Tupes (CT). They use a LIFO system of inventory. The partnership operating agreement states that each partner will receive a monthly distribution of $1,000, then commissions for their own sales, thetn 12% APR return on their beginning equity, /40% ar Mary in this order). The monthly distribution and commissions are taken daring the month as a draw and the journal entries have already been made at the time of payment. and then split the remaining profit 60% for Michelle During the month, VAC received a letter from the attorncy of Jenny (one of their customers). The letter informed VAC that Jenny had declared bankruptcy and will not be paying the outstanding balance of her account ($300). Another month is finally over!! Time to "close the books" Your assignment in that process is to create the first two required financial statements for the previous month. To accomplish this assignment, you will use the provided information to calculate the following L. Create the Income Statement in the proper format, including net sales, COGS, gross profit, expenses and net income, 2. Create a Statement of Owners Equity 3. Provide an ending inventory schedule (schedule should include in good order, details by 4 Provide the Net Book Value for the equipment S Provide only the journal entries for the following: a Income allocation between partners b. Record the monthly bad debt expense Record the monthly depreciation expense Recognize the bad debt write-off for Jenny c d Beginning Inventory Schedule (listed in the order they were purchased): inning Inventory CT Beginning Inventory 8TT Amount Units Cost Amount Cost 130 $5.00 35 $5.20 140 $7.00 160 $7.50 256 $8.00 556 $980.00 $1,200.00 $2,048.00 $4,228.00 $650.00 $702.00 56 55 50$858.00 $2.210.00 You estimate that VAC will write off2% of their sales in bad debt. Outbound freight to customers is calculated at S0.50 per unit sold Shipping supplies (boxes, tape, etc.) are calculated at S0.20 per unit sold. ACC 101 Ater graduating from with the most valuable degree in Accounting, Michelle and Mary join together to form a new partnership named The Vintage Audio Company VAC), Thoy sell two items to a specialty market 8 Track Tapes (8TT), and Cassette Tupes (CT). They use a LIFO system of inventory. The partnership operating agreement states that each partner will receive a monthly distribution of $1,000, then commissions for their own sales, thetn 12% APR return on their beginning equity, /40% ar Mary in this order). The monthly distribution and commissions are taken daring the month as a draw and the journal entries have already been made at the time of payment. and then split the remaining profit 60% for Michelle During the month, VAC received a letter from the attorncy of Jenny (one of their customers). The letter informed VAC that Jenny had declared bankruptcy and will not be paying the outstanding balance of her account ($300). Another month is finally over!! Time to "close the books" Your assignment in that process is to create the first two required financial statements for the previous month. To accomplish this assignment, you will use the provided information to calculate the following L. Create the Income Statement in the proper format, including net sales, COGS, gross profit, expenses and net income, 2. Create a Statement of Owners Equity 3. Provide an ending inventory schedule (schedule should include in good order, details by 4 Provide the Net Book Value for the equipment S Provide only the journal entries for the following: a Income allocation between partners b. Record the monthly bad debt expense Record the monthly depreciation expense Recognize the bad debt write-off for Jenny c d Beginning Inventory Schedule (listed in the order they were purchased): inning Inventory CT Beginning Inventory 8TT Amount Units Cost Amount Cost 130 $5.00 35 $5.20 140 $7.00 160 $7.50 256 $8.00 556 $980.00 $1,200.00 $2,048.00 $4,228.00 $650.00 $702.00 56 55 50$858.00 $2.210.00 You estimate that VAC will write off2% of their sales in bad debt. Outbound freight to customers is calculated at S0.50 per unit sold Shipping supplies (boxes, tape, etc.) are calculated at S0.20 per unit sold