Comprehensive Problem 8 a-b, c1-c3 (Part Level Submission) Monty Corp.'s balance sheet at December 31, 2019, is presented below. Cash Accounts receivable Allowance for doubtful accounts Inventory Monty Corp. Balance Sheet December 31, 2019 $14,800 Accounts payable 20,000 Common stock (800) Retained earnings 9,300 $43,300 $8,650 18,000 16,650 $43,300 During January 2020, the following transactions occurred. Monty uses the perpetual inventory method. Jan. 1 Monty accepted a 4-month, 8% note from Merando Company in payment of Merando's $4,200 account. 3 Monty wrote off as uncollectible the accounts of Inwood Corporation ($500) and Goza Company ($100). 8 Monty purchased $18,600 of inventory on account. 11 Monty sold for $25,600 on account inventory that cost $17,200. 15 Monty sold inventory that cost $700 to Mark Lauber for $1,500. Lauber charged this amount on his Visa First Bank card. The service fee charged Monty by First Bank is 3%. 17 Monty collected $21,900 from customers on account. 21 Monty paid $16,400 on accounts payable. 24 Monty received payment in full ($100) from Goza Company on the account written off on January 3. 27 Monty purchased supplies for $1,450 cash. 31 Monty paid other operating expenses, $3,400. Adjustment data: 1. 2. 3. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2020, accounts receivable. A count of supplies on January 31, 2020, reveals that $600 remains unused. (a) Your answer is partially correct. Try again. Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual system.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 v Notes Receivable 4,200 Accounts Receivable 4,200 VL Jan. 3 v Allowance for Doubtful Accounts 600 Accounts Receivable 600 Jan. 8 Inventory 18,600 Accounts Payable 18,600 Jan. 11 v Accounts Receivable 25,600 Sales Revenue 25,600 (To record sales revenues.) Jan. 11 Cost of Goods Sold 200 Inventory 17,200 (To record cost of goods sold.) Jan. 15 Cash 1,455 Service Charge Expense Jan. 15 Cash 1,455 Service Charge Expense 45 IL Sales Revenue 1,500 (To record sales revenues and service charges.) Jan. 15 Cost of Goods Sold 700 Inventory 700 (To record cost of goods sold.) Jan. 17 Cash 1,900 Accounts Receivable 21,900 Jan. 21 Accounts Payable 16,400 IT Cash 16,400 Jan. 24 Accounts Receivable 100 Allowance for Doubtful Accounts 100 (To reinstate the account previously written-off.) Jan. 24 Cash 100 IL Accounts Receivable 100 (To record the payment received.) "Jan. 277 Supplies 1,450 Jan. 24 Cash Accounts Receivable 100 (To record the payment received.) Jan. 27 Supplies ,,450 Cash 1,450 Jan. 31 Other Operating Expenses ,400 Cash 3,400 (To record other operating expense.) Jan. 31 (1) Interest Receivable Interest Revenue (To record interest revenue.) Jan. 31 Bad Debt Expense 1,034 Allowance for Doubtful Accounts 1,034 (To record bad debt expense.) Jan. 31 Y (3) Tsupplies Expense 850 T Supplies Supplies 850 (To record supplies expense.)
