Help Sa Required information Problem 7-20A Accounting for uncollectible accounts: Percent of receivables allowance method LO 7-2, 7-3 [The following information applies to the questions displayed below) Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $120,000 cash. 2. Purchased $200,000 of merchandise on account. 3. Sold merchandise that cost $156,000 for $310,000 on account. 4. Collected $280,000 cash from accounts receivable. 5. Paid $180,000 on accounts payable. 6. Paid $58,000 of salaries expense for the year 7. Paid other operating expenses of $74,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Percent likely to Be Uncollectible Amount 00 Allowance Balance Edmonds_AB_1.pptx TT napter b. Surved 4. Collected $280,000 cash from accounts receivable. 5. Paid $180,000 on accounts payable. 6. Paid $58,000 of salaries expense for the year. 7. Paid other operating expenses of $74,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 0-30 31-60 61-99 Over 90 days Amount $18,000 7,500 1,500 1,500 1,500 Percent Likely to Be Uncollectible @.01 0.05 0.10 0.20 0.50 Problem 7-20A Part a Required a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if th corresponding Retained Earnings input needed.) Homework 3 - Chapter 6, 7 & 8 0 Help Save & Ch: 3 Required information 3 points Event SAGE INC Accounting Equation for the Year 1 Liabilities Equity Merchandise Accounts Common Retained Inventory Payable Stock Earnings Assets Accounts Receivable Allowance Cash Accounts Titles for Retalhed Earnings eBook 1 2 Ask Print 3a 3b 4 5 6 7 8 Bal Edmonds_IRAB_1.pptx i SLS