ig is an agg Age Group Not yet due 1-90 days past due 90-180 days past due More than 180 days past due Total Accounts Receivable balance Amount of Receivables $34,000 17,000 4,000 1,500 $56,500 Based on a review of past collection experience, the probability that an account will not be collected is 0.4% for accounts not yet due, 3% for accounts between 1 and 90 days past due, 12% for accounts 90 to 180 days past due and 60% for accounts more than 180 days past due. Make any necessary entry (or entries) based on this information. 3. DHI placed the following inventory orders near the end of the year but no entries for these orders were recorded in the accounting records. Make the appropriate entries for December 2023. Amount of Inventory Purchased Date Shipped by Shipping Terms Supplier $12,000 12/22/23 FOB Shipping Point Date Received at DHI 12/28/23 $3,000 12/23/23 FOB Destination 12/30/23 $5,200 $700 12/29/23 12/29/23 FOB Destination FOB Shipping Point 1/7/24 1/8/24 4. DHI received a bill for delivery charges related to the $12,000 inventory purchase on 12/22/23. The amount totaled $125. DHI will pay the bill early in January 2024. 5. DHI purchased equipment on November 1, 2023 by paying $5,000 on that date and signing a 3-year non-interest bearing note for $15,000. The note will be paid on November 1, 2026. The equipment has an estimated useful life of 10 years with no salvage value. Make all entries for the equipment necessary for 2023 (including any depreciation.) 6. DHI incurred the following costs in December that need to be recorded. Date Description 12/1/23 12/15/23 Paid for Christmas Decorations for the company's lobby 12/28/23 12/29/23 Paid a contractor who painted the Employee break room during December Paid a contractor who finished installing a water purification system to provide chemical free water for all water fountains in the DHI building Paid the legal fees to attorneys who registered DHI's company logo as a trademark Amount $250 $650 $3,100 $7,000 7. Walking through the DHI building, you notice some discarded computer equipment. After asking around, you find out that the equipment is no longer in working order and the company is waiting to dispose of the equipment at an electronics recycling event sponsored by the city of Dayton that is scheduled for late January 2024. The equipment was purchased in January of 2020 for $14,000 and had an anticipated useful life of 5 years with a $0 salvage. The equipment was taken out of service at the end of September 2023. No entries have been made relative to the equipment in 2023. 8. A forklift was purchased in January of 2022 and was properly recorded in the equipment account. However, due to an oversight, no depreciation has been recorded on that forklift in the accounting records. The forklift cost $20,000. It had an expected useful life of 15 years and $2,000 salvage value. Correct this error, properly recording both the past and the current year's depreciation. Assume the correct amount of depreciation was taken on the 2022 tax return even though none was recorded in the accounting records. 9. DHI sold 60 shares of treasury stock for $25 per share on August 1, 2023. 10. DHI declared a 5% stock dividend on its common stock on December 18. The stock dividend was distributed on December 30, 2023. Digital Home, Incorporated (DHI) Preliminary Trial Balance December 31, 2023 Digital Home, Incorporated (DHI) Post Closing Trial Balance December 31, 2022 Debit Credit Debit Credit Cash 34,000 Cash 20,100 Accounts Receivable 56,500 Accounts Receivable 36,000 Allowance for Doubtful Accounts 300 Allowance for Doubtful Accounts 1,900 Inventory 98,500 Inventory 72,500 Equipment 261,000 Equipment 172,000 Accum Deprec-Equip 19,200 Accum Deprec-Equip 19,200 Building 280,000 Building 280,000 Accum Deprec - Building 27,000 Accum Deprec- Building 27,000 Land 90,000 Land 90,000 Accounts Payable 87,500 Accounts Payable 137,930 Note Payable $250,000 Interest Payable 820 Discount on Notes Payable 31,640 Note Payable 250,000 Preferred Stock, 6%, $100 par 50,000 Discount on Notes Payable 31,640 Paid in Capital - Preferred Stock 3,700 Preferred Stock, 6%, $100 par 50,000 Common Stock ($8 par) 80,000 Paid in Capital - Common Stock 26,400 Paid in Capital - Preferred Stock Common Stock, $8 par 3,700 80,000 Retained Earnings 107,490 Treasury Stock (100 shares) 2,200 Paid in Capital - Common Stock Retained Earnings 26,400 107,490 Sales 798,750 Treasury Stock (100 shares) 2,200 Installation Revenue 75,600 704,440 704,440 Cost of Goods Sold 392,000 Operating Expenses 226,900 Interest Expense 4,700 Income Tax Expense 48,500 1,525,940 1,525,940