Question
Dani Trading Inc. (DTI) is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its
Dani Trading Inc. (DTI) is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance | Beginning Balance | ||||||
Cash | $ | 97,200 | $ | 116,700 | |||
Accounts receivable | 77,600 | 83,600 | |||||
Inventory | 104,200 | 95,000 | |||||
Property, plant, and equipment | 276,000 | 266,000 | |||||
Less accumulated depreciation | (92,000 | ) | (66,500 | ) | |||
Total assets | $ | 463,000 | $ | 494,800 | |||
Accounts payable | $ | 60,800 | $ | 108,000 | |||
Income taxes payable | 47,200 | 62,800 | |||||
Bonds payable | 114,000 | 95,000 | |||||
Common stock | 133,000 | 114,000 | |||||
Retained earnings | 108,000 | 115,000 | |||||
Total liabilities and stockholders equity | $ | 463,000 | $ | 494,800 | |||
During the year, DTIpaid a $11,400 cash dividend and it sold a piece of equipment for $5,700 that had originally cost $13,200 and had accumulated depreciation of $8,800. The company did not retire any bonds or repurchase any of its own common stock during the year.
Required:
a. If the company credited sales and debited accounts receivable for $1,140,000 during the year, what is the total amount of credits recorded in accounts receivable during the year?
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