D (a) A petty cash fund in the amount of $300 was established for small cash purchases that are made on a regular basis. (b) ROSE COMPANY TRANSACTIONS RELATING TO CASH ACCOUNTS AND RECEIVABLE FOR CURRENT YEAR (c) (d) (e) The company had cash sales in the amount of $250,000 and credit sales of $500,000 for the year. The company also had $30,000 of sales returns, $10,000 of which pertained to the cash sales and the remainder were for sales on account. The company collected 80% of the gross credit sales made during the year. The company wrote off $45,000 of accounts receivable during the year as uncollectible. The company received $25,000 in payment of accounts receivable that had previously been written off. The petty cash fund was replenished at a time when the following receipts were found in the box. The cash in the box at this time was $25. Receipts for office supplies purchased Receipts for freight paid on merchandise purchased for resale Receipts for meals that were related to business Receipts for postage and other office expense items $ 40 75 30 120 The company received a note from a customer in the amount of $50,000 for the purchase of merchandise. The note bears no interest and is due in two years. The interest rate for similar notes at this time was 8%. The balances at the end of the year for accounts receivable and allowance for doubtful accounts are $135,000 and $1,000 (credit) balance. The company estimates that 10% of the gross receivables balance will be uncollectible. The company made the appropriate adjusting entry for the note in (g) above. Assume that the note was outstanding for half of the year only.

\begin{tabular}{|l|l|} \hline & \multicolumn{1}{|c|}{\begin{tabular}{l} ROSE COMPANY \\ TRANSACTIONS RELATING TO CASH ACCOUNTS AND RECEIVABLE \\ FOR CURRENT YEAR \end{tabular}} \\ \hline (a) & \begin{tabular}{l} A petty cash fund in the amount of $300 was established for small cash purchases that are \\ made on a regular basis. \end{tabular} \\ \hline (b) & \begin{tabular}{l} The company had cash sales in the amount of $250,000 and credit sales of $500,000 for the \\ year. The company also had $30,000 of sales returns, $10,000 of which pertained to the \\ cash sales and the remainder were for sales on account. \end{tabular} \\ \hline (c) & The company collected 80% of the gross credit sales made during the year. \\ \hline (d) & The company wrote off $45,000 of accounts receivable during the year as uncollectible. \\ \hline (e) & \begin{tabular}{l} The company received $25,000 in payment of accounts receivable that had previously been \\ written off. \end{tabular} \\ \hline (f) & \begin{tabular}{l} The petty cash fund was replenished at a time when the following receipts were found in \\ the box. The cash in the box at this time was $25. \end{tabular} \\ \hline \\ \hline Receipts for office supplies purchased \\ \hline Receipts for freight paid on merchandise purchased for resale \\ \hline Receipts for meals that were related to business \\ \hline Receipts for postage and other office expense items \\ \hline \end{tabular}