Company Information & Summary of Significant Account Policies

Macon Machines Company began operations on November $1,2024.$ The main operating goal of the company is to sell high end robots. Customers may pay using cash or if appropriate, credit is extended to customers with terms $\frac{3}{15},\frac{n}{30}.$ The company uses the perpetual inventory method and a FIFO cost system. The company follows a calendar year, with all adjusting entries made at the end of the accounting period, December $31.$ The company uses the straight$-$line depreciation for all depreciable assets. The company has decided to use the Allowance method to account for uncollectible accounts. At the end of the period, based on industry standards, the company believes $2\%$ of the balance in accounts recievable will be uncollectible. The company purchases robots for resale only as such they carry them as inventory.

The company has two employees, one is a sales technician, salary of $$4000$ per month and the other employee is the office manager with a salary of $$1000$ per month. Payroll is processed on the last day of the month, and paid on the first day of the following month. This means the November $30$ payroll with accrue into Salaries Payable and then be paid on Decemember $1.$