Gordon Corportion
Preliminary Trial Balance
December 31, 2021
	Debit	Credit
Cash	34,240
Accounts Receivable	67,600
Allowance for Doubtful Accounts		300
Inventory	28,500
Equity Securities (at Fair Value)	17,274
FV Adjustment - Equity Securities	1,300
Investment in Ramsey Corporation	70,000
Equipment	78,126
Accum Deprec-Equip		19,200
Building	246,700
Accum Deprec - Building		47,000
Land	50,000
Right of Use Asset	89,302
Accounts Payable		57,500
Lease Liability		69,302
Bank Loan		25,935
Common Stock ($6.50 par)		65,000
Paid in Capital - Common Stock		86,400
Retained Earnings		138,080
Treasury Stock (100 shares)	2,200
Sales		441,385
Design and Installation Revenue		259,000
Cost of Goods Sold	192,400
Operating Expenses	244,000
Depreciation Expense	2,900
Interest Expense	14,700
Income Tax Expense	69,860
TOTAL	1,209,102	1,209,102

Record the following transactions.

1. Based on past experience, Gordon estimates that 2.5% of the accounts receivables at year end will not be collected.

Question 1		Debit	Credit
Bad Debt Expense		$ 1,390
Allowance for Doubtful Accounts			$ 1,390
Question 1		Debit	Credit
Allowance for Doubtful Accounts		$ 1,690
Accounts Receivable			$ 1,690

2. Gordon allows customers to return merchandise for up to 60 days after it is purchased. Gordon estimates returns in January and February of 2022 will be $4,000. Gordon marks-up products it sells 40% above cost.

Question 2		Debit	Credit
Sales		$ 4,000
Cash			$ 4,000
Question 2		Debit	Credit
Inventory		$ 2,857
Cost of goods sold			$ 2,857

did i do this right?