Crane French Modern Retailers Ltd. has been in operation for several years. It wholesales furniture to its customers. The company's post-closing trial balance at July 31, 2021, the end of its fiscal year, is presented below: CRANE French Modern Retailers Ltd. Post-Closing Trial Balance July 31, 2021 Debit Credit Cash $161,660 Accounts receivable. 2,527,200 Allowance for doubtful accounts $ 311.700 Inventory 490,400 Estimated inventory returns 54,000 Equipment 202.990 Afowance for Inventory 490,400 Estimated inventory returns 54,000 Equipment 202,990 Accumulated depreciation-equipment Accounts payable 73,027 1,036,850 Refund liability Bank loan payable (due in 4 years) Common shares Retained earnings 100,000 321,500 289,200 1,303,973 $3,436,250 $3,436,250 The company had a limited amount of business activity in August 2021 because of holidays for both the compart customers. You have been hired on a temporary basis to update the company's records for August. The August t The company had a limited amount of business activity in August 2021 because of holidays for both the company and its major customers. You have been hired on a temporary basis to update the company's records for August. The August transactions and adjustments are presented below: Aug. 1 Paid $20,200 for office expenses and $3,385 for the August rent. 2 Accepted a six-month, 8% note in exchange for Chen Enterprises' overdue account receivable of $93,000. 3 8 9 10 10 14 22 21 Sale on account to Chavier Ltd. for $496,200. Cost of goods sold, $257,010. The company uses a perpetual inventory system and estimates that inventory sold for $50,000 (cost $27,000) will likely be returned. Determined that an account receivable from Densmore Ltd. of $75,160 is uncollectible. A $298,900 partial payment on account was received from Chavier (see August 3 transaction). Old equipment was sold for $5,700. The equipment's original cost was $38,590; accumulated depreciation to the date of disposal was $31,644. Paid a $9,060 income tax instalment. Purchased a patent for $24,300 cash. The estimated useful life of the patent is five years; the legal life. 20 years. 1 Purchased a patent for $24,300 cash. The estimated useful life of the patent is five years; the legal life, 20 years. 8 Inventory sold on credit for $60,000 and costing $32,400 was returned by customers. 1 Recorded cash received from sales for the month, $72,010. The cost of goods sold is $37,700. 1 31 31 The monthly bank statement revealed the following unrecorded items: interest on bank loan, $1,640, and bank service charges, $1,232. Reviewed outstanding accounts receivable. Determined, through an aging of accounts, that doubtful accounts totalled $304,550 at month end. Recorded depreciation for the month on the remaining equipment that cost $164,400 and is still in use. Useful life of all equipment is estimated to be four years with no residual value. The straight-line method of depreciation is used and depreciation is calculated to the nearest month. 31 Recorded and paid salaries for the month, $103,000. 31 Accrued interest on the Chen Enterprises note receivable (see August 2 transaction). 31 Recorded amortization on the patent (see August 21 transaction). A full month's amortization is recorded on any intangible assets acquired during the month. Prepare an adjusted trial balance at August 31. (Round answers to O decimal places, eg. 5,275.) CRANE IMAGES LTD. Trial Balance August 31, 2021 Cash Supplies Land Buildings Debit Credit Buildings