C8-1 Recording and Reporting Credit Sales and Bad Debts Using the Aging of Accounts Receivable Method (Chapters 6 and 8) [LO 6-4, LO 8-2]

Okay Optical, Inc. (OOI), began operations in January, selling inexpensive sunglasses to large retailers like Walgreens and other smaller stores. Assume the following transactions occurred during its first six months of operations.

	January		1		Sold merchandise to Walgreens for $20,000; the cost of these goods to OOI was $12,000.
	February		12		Received payment in full from Walgreens.
	March		1		Sold merchandise to Bravis Pharmaco on account for $3,000; the cost of these goods to OOI was $1,400.
	April		1		Sold merchandise to Tonys Pharmacy on account for $8,000. The cost to OOI was $4,400.
	May		1		Sold merchandise to Anjuli Stores on account for $2,000; the cost to OOI was $1,200.
	June		17		Received $6,500 on account from Tonys Pharmacy.

Required:

1. 3-a. Show how OOI would report its accounts receivable on its June 30 balance sheet.