Question
Can you help me with these questions? These are my last ones that test my comprehension on long-term assets, long-term liabilities, stockholders equity, and statement
Can you help me with these questions? These are my last ones that test my comprehension on long-term assets, long-term liabilities, stockholders equity, and statement of cash flows. Can you help me finish this? Thank you!
a. Company A has the following transactions during July.
July 5 | Purchases 34 LCD televisions on account from Company B for $2,200 each, terms 2/10, n/30. |
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July 8 | Returns to Company B two televisions that had defective sound. |
July 13 | Pays the full amount due to Company B. |
July 28 | Sells remaining 32 televisions from July 5 for $2,700 each on account. |
Required:
Record the transactions of Company A, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
b. A company reports the following amounts in its December 31, 2024, income statement.
Sales revenue | $432,000 | Income tax expense | $56,000 |
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Interest expense | 26,000 | Cost of goods sold | 136,000 |
Salaries expense | 46,000 | Advertising expense | 36,000 |
Utilities expense | 56,000 |
Required: Prepare a multiple-step income statement.
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c. At the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $2,300 (credit) before any year-end adjustment. The balance of Accounts Receivable is $195,000. The company estimates that 10% of accounts receivable will not be collected over the next year.
Required: Record the adjusting entry for uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
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