i need help with the red highlighted area! i know its a lot im sorry:(
Current Attempt in Progress Novak Furniture Limited reports the following information for 11 months of the year in its February 28, 2021. trial balance. The company's year end Is March 31. Credit NOVAK FURNITURE LIMITED Trial Balance February 28, 2021 Debit Cash $67,600 Accounts receivable 364,000 Inventory 2.860.000 Supplies 7,800 Prepaid rent 5.20 Equipment 150.800 Accumulated depreciation-equipment Accounts payable Deferred revenue Bank loan payable Common shares Retained earnings Dividends declared 52.000 Sales Cost of goods sold 3,997,656 Advertising expense 78,000 Freight out 187,200 Office expense 27.040 Rent expense 57,200 Salaries expense 374.400 Travel expense 13,000 Utilities expense 20.800 Interest expense 28,080 Income tax expense 156,000 $8,446,776 $30,160 1,612.000 36,400 468,000 208,000 572,520 5,519,696 $8.446,776 Novak Furniture incurred the following transactions for the month of March. The company uses a perpetual Inventory system Mar. 1 2 5 Received $130,000 on account from a major customer Paid a supplier an amount owing of $208,000, taking the full discount, terms 2/10, 1/30 Purchased merchandise from a supplier, $312.000, terms 2/10, 1/30, FOB destination Recorded cash sales. $296,400. The cost of goods sold for these sales was $208.000 Returned scratched merchandise to the supplier from the March 5 purchase. $26.000 6 7 Novak Furniture incurred the following transactions for the month of March. The company uses a perpetual inventory system. Mar. 1 2 5 6 7. 8 9 9 12 Received $130,000 on account from a major customer. Paid a supplier an amount owing of $208,000, taking the full discount, terms 2/10, 1/30 Purchased merchandise from a supplier $312,000, terms 2/10,n/30, FOB destination. Recorded cash sales. $296,400. The cost of goods sold for these sales was $208,000. Returned scratched merchandise to the supplier from the March 5 purchase, $26,000. The appropriate company paid freight for the March 5 purchase, $7,800. Sold $208,000 of merchandise on account, terms 2/10, 1/30, FOB destination. The cost of goods sold was $145,600. Management estimated that sales returns will be 12% of sales. The appropriate company paid freight for the March 9 sale, $5,200. Ordered custom merchandise for a local designer totalling $52,000. Received $13,000 as a deposit. Accepted returned merchandise from the sale on March 9. $20,800. The cost of the goods returned to inventory was $14,560. Paid for the merchandise purchased on March 5, net of merchandise returns on March 7. Pald salaries of $46,800. Recorded cash sales, $265,200. The cost of goods sold for these sales was $186,160. No returns were anticipated related to these sales. Paid salaries of $52,000. Received payment of merchandise sold on March 9, net of merchandise returns on March 13. Paid rent, $5,200. 13 14 16 20 27 29 30 (a) Your Answer Correct Answer Your answer is partially correct. Question 3 of 3 0.215 5 Date Account Titles and Explanation March Cash 1 Debit Cred 130000 Accounts Receivable 2 Accounts Payable 208000 Sales Discounts Cash 5 Purchases 312000 Accounts Payable 6 cash 296000 Sales (To record sale) 6 26000 (To record cost of merchandise sold) Accounts Payable 7 7800 Purchase Returns and Allowances 8 Freight in 208000 cas 9 Accounts Receivable 5200 Sales (To record credit sale) Freight Out 9 Cash 13000 (To record cost of merchandise) 9 20800 (To record payment of freight on goods sold) 12 Selected All 0.215 E (To record cost of merchandise) 9 20800 (To record payment of freight on goods sold) Cash 12 13 Sales Returns and Allowances Accounts Receivable (To record return of goods) 13 (To record cost of merchandise returned) Accounts Payable 14 Purchase Discounts 16 Sales 20 (To record sale) Cash 20 Sales (To record cost of merchandise sold) Sales Expense 27 Gasin 29 Accounts Receivable 30 Prepaid Rent Debit Credit 130000 130000 208000 4160 203840 312000 312000 296400 296400 26000 L_26000 erchandise sold) 7800 Sand Allowances 7800 208000 20800 be 5200 5200 sale) 13000 13000 of merchandise) 20800 ment of freight on goods sold) and Allowances uestion 3 of 3 0.215 cord cost of merchandise) 13000 20800 cord payment of freight on goods sold) s Returns and Allowances ounts Receivable cord return of goods) cord cost of merchandise returned) ounts Payable chase Discounts cord sale) h ON 15 cord cost of merchandise sold) iries Expense Ounts Receivable paid Rent
