Question
Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Building Debit $ 85,000 55,000 Credit $ 5,000 45,000 85,000 Accumulated Depreciation 25,000 Land 215,000
Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Building Debit $ 85,000 55,000 Credit $ 5,000 45,000 85,000 Accumulated Depreciation 25,000 Land 215,000 Accounts Payable 35,000 Notes Payable (81, due in 3 years) 51,000 Common Stock 115,000 Retained Earnings 254,000 Totals $485,000 $485,000 The $45,000 beginning balance of inventory consists of 450 units, each costing $100. Duding January 2021, the following transactions occurred: Jankary 2 Received a $35,000 6-month, 68 note on a loan Boomer made to Cowboys, Inc. January 5 Purchased 5,200 units of inventory on account for $572,000 ($110 each) with terms 1/10, n/30. January 8 Returned 100 defective units of inventory purchased on January 5. January 15 Sold 5,000 units of inventory on account for $650,000 ($130 each) with terms 2/10, n/30. Record 2 entries for this transaction. January 17 Customers returned 200 units sold on January 15. These units were originally purchased by Boomer on January 5. The units were placed in inventory to be sold in the future. Record 2 entries for this transaction. January 20 Received cash from customers on accounts receivable. This amount includes $51,000 from 2020 plus amount receivable on sale of 4,400 units sold on January 15. January 21 Wrote off remaining accounts receivable from 2020.. January 24 Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount oved from purchase of 4,800 units on January 5.1 January 28 Paid cash for salaries during January, $43,000. January 29 Paid cash for utilities during January, $25,000. January 30 Paid dividends, $4,000. The following information is available on January 31, 2021 for adjusting entries at the end of the month. a. Boomer estimated that 10% of the January 31 accounts receivable balance will not be collected. b. Accrued interest on notes receivable for January. Arenied interest on notoc nauable for lanuary
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started