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Fill in the yellow shaded regions with the correct criteria. Select Retailer/Merchandiser-Related Transactions: 1) Road Runner Racers (RRR) purchased $10,000 of merchandise from Warehouser Plus
Fill in the yellow shaded regions with the correct criteria.
Select Retailer/Merchandiser-Related Transactions: 1) Road Runner Racers (RRR) purchased $10,000 of merchandise from Warehouser Plus on January 10. RRR was given terms of 4/15, n/30. FOB shipping point. RRR paid $100 for delivery. 2) RRR paid their invoice to Warehouser Plus on January 25th. 3) On February 2, RRR sold $1,000 of merchandise to Rowdy's Inc. RRR offered Rowdy credit terms of 2/10, n/45. RRR's cost of the merchandise was $500. 4) On February 5, Rowdy contacted RRR because some of the goods were damaged. RRR offered Rowdy a $50 credit allowance. Rowdy agreed to the allowance. 5) Rowdy paid their invoice on February 12. 6) RRR counted inventory on February 28. Their books showed $69,200 in inventory, but the physical inventory count only showed $68,650. Credit Debit $10,000 $100 Sales related journal entries Transaction Account 10-Jan Inventory Purchased merchandise with terms 4/15, n/30 10-Jan Cash Paid delivery costs 25-Jan Inventory Cash Paid for merchandise within discount period 2-Feb Sold merchandise 2-Feb Cost of Sales 5-Feb Credit allowance 15-Feb Cash $1,000 $950 Received payment from Rowdy's within discount period 28-Feb Adjustment for inventory shrinkage Liabilities + Assets Cash $43,138 Equity Sales Revenue $ 309,392 Sales Discounts $4,144 $100 Accounts Payable $ 18,000 $4,144 $43,038 18,000 $ 309,392 Is Returns and Allowar $2,763 Supplies $ 16,200 Wages Payable $ 2,500 Common Stock $ 40,050 $6,980 $2,763 $ 9,220 $ 2,500 $ 40,050 Equipment $ 116,100 Insurance Payable $ 2,000 Wages Expense $94,500 $2,500 $97,000 Retained Earnings $ 22,630 $ 116,100 2,000 Supplies Expense $6,980 $ 22,630 ccumulated Depreciation - Equipmei $11,600 $6,980 Dividends $765 $11,600 Depreciation Expense $11,600 $765 Inventory $60,000 $10,000 $70,000 $11,600 COGS $45,000 Accounts Receivable $7,500 $1,000 $7,550 $950 Delivery Expense $1,962 309,392.00 (4,144.00) (2,763.00) 302,485.00 Road Runner Racers Income Statement For Period ending February 28, 2025 Revenue Sales Revenue Sales Discounts $ Sales Returns and Allowances $ Net Sales $ Cost of Goods Sold $ $ Expenses Wages Expense $ 97,000.00 Depreciation Expense $ 11,600.00 Delivery Expense $ Supplies Expense $ 6,980.00 Total Expenses $ $ 302,485.00 (115,580.00) 186,905.00 Road Runner Racers Statement of Stockholder's Equity For period ending February 28, 2025 Common Stock Retained Earnings Total Beginning of Period $ $ 22,630 $ Net Income $ 186,905 $ Dividends $ (765) $ Stock Additions $ End of Period, December 31 $ 40,050 $ 208,770 $ 22,630 186,905 (765) 248,820 Road Runner Racers Adjusted Trial Balance 28-Feb-25 Debit Credit Cash $ 43,038 A/R $ 7,550 Supplies $ 9,220 Inventory $ 70,000 Equipment $ 116,100 Accumulated Depreciation $ 11,600 Accounts Payable $ 18,000 Wages Payable $ 2,500 Insurance Payable 2,000 Common Stock 40,050 Retained Earnings 22,630 Dividends $ 765 Sales Revenue $ 309,392 Sales Discounts $ 4,144 Sales Returns and Allowances $ 2,763 COGS $ Wages Expense $ 97,000 Depreciation Expense $ 11,600 Delivery Expense $ Supplies Expense $ 6,980 $ 369,160 $ 406,172 ad Runner Racers Balance Sheet 28-Feb-25 Assets Liabilities $ $ $ $ 43,038 7,550 9,220 70,000 Current Liabilities Accounts Payable Wages Payable Insurance Payable 129,808 Total Liabilities $ $ $ 18,000 2,500 2,000 $ $ 22,500 Current Assets Cash A/R Supplies Inventory Total Current Assets Property, Plant and Equipment Equipment Accumulated Depreciation Book Value Total PP & E Total Assets $ $ $ 116,100 (11,600) 104,500 $ $ Stockholder's Equity Common Stock $ Retained Earnings $ 104,500 Total Stockholder's Equity 234,308 Total Liabilities and Stocholder Equity 40,050 208,770 $ 248,820 $ 271,320Step by Step Solution
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