IGHT Rocky's Outdoor Adventures (ROC) is a retailer of sporting equipment and outdoor apparel. The following transactions occurred for ROC during the month of August 2020: Date August 5 August 6 August 6 August 11 Transaction Description Purchased $7.200 of inventory on account from Champ Enterprises. The invoice terms were 2/15, 1/60 Paid $156 to ship the goods that were purchased on August 5 from Champ Enterprises ROC determined that $600 of the goods shipped on August 5 were damaged. ROC returned these goods to Champ Enterprises. Sold $13,300 of products to Chatterly Collegiate Institute. The invoice terms were 2/10, n/30 merchandise had a cost of $6,800 to ROC. Purchased $640 of office supplies from North Co. with cash. Sent Chatterly Collegiate a credit memo for $400 for goods that did not meet the customer's specifications, Paid the balance owing to Champ Enterprises from the August 5 purchase Received a chaque from Chatterly Collegiate in full payment of their account The merchandise inventory account had an onding balance of $67.400. A physical count of inventory was done and an inventory balance of $65.775 was reported August 12 August 15 August 18 August 21 August 31 Required: Prepare oumal entries for each of the above transactions, assuming that ROC has a perpetual inventory system Kiss The Chef (KTC) is a successful kitchen appliance and equipment retailer. One of KTC's most popular products is a compact, 3-basket air fryer that sells for $140. On January 1, 2020, KTC's inventory consisted of 37 air fryers with a cost of $94 each KTC made the following purchases of air fryers during the 2020 year: Date of Purchase Quantity Cost March 12 45 $96 June 25 26 $95 September 4 32 $97 KTC made the following cash sales of air fryers during the 2020 year Date of Sale Quantity May 16 48 August 7 32 October 10 27 KTC uses a perpetual inventory system and the first in first-out (FIFO) inventory method Required: 1. Calculate the value of onding inventory and the cost of goods sold for air fryers for the 2020 year (8 marks) 2. Prepare any lournal entries required for the sale of goods on October 10, 2020 (3 marks) Creekstone Jewellery had the following unadjusted balances in its general ledger accounts as of its year end date of December 31, 2020: DR. CR Accounts receivable $1,422,100 Allowance for doubtful accounts $1,457 Sales revenue $15,871,000 80% of Creekstone's sales revenue for the 2020 year was generated from sales that were made on account The following events occurred during the 2021 year: May 25 Customer Jonathan Smith paid the balance owing on his account of $5,200. Management wrote off this account receivable when the December 31, 2020 adjusting journal entries were made July 17 Management determined that the account receivable balance of $4.400 owing from Ralph's Custom Jewellery was uncollectible. Creekstone follows the allowance method of accounting for bad debts. Required: 1. Prepare the adjusting journal entry for bad debts on December 31, 2020 assuming that bad debts expense is estimated to be 15% of credit sales (2 marks) 2. Prepare the adjusting journal entry for bad debts on December 31, 2020 assuming that uncollectible accounts are estimated to be 15% of outstanding accounts receivable. (3 marks) 3. Prepare journal entries for the events that occurred on May 25, 2021 and July 17 2021 (3 marks) Verification Following is the Cash account in the general ledger for the month of August 2020 for Halifax Enterprises: Cash Date Acct. No. 101 Explanation PR Debit Credit 2020 Balance Jul. 31 Balance 14,389.35 Aug. 1 Deposit G25 2,534.17 16,923.52 Aug. 3 Cheque #442 G25 987.22 15,936.30 Cheque #443 G25 1,552.34 14,383.96 Aug. 10 Cheque #444 G25 3.199.68 11,184.28 Aug. 14 Deposit G26 10,656.11 21,840.39 Aug. 17 Cheque #445 G26 287.47 21,552.92 Aug. 22 Cheque #446 G26 6,399.76 15.153.16 Aug. 26 Cheque #447 G26 2.818.45 12,334.71 Aug. 31 Deposit G26 4,234.12 16,568.83 Aug. 7 A bank reconciliation prepared by Halifax Enterprises on July 31, 2020 appeared as follows: Halifax Enterprises Bank Reconciliation July 31, 2020 Bank statement balance $12,814.36 Book balance $14,314.35 Add: Deposit of July 31 in transit Add: 4. 114.55 $16.928.91 Interest income 80.00 $14,394,35 Deduct: Outstanding cheque: #441 Adjusted bank balance Deduct: Bank service charge 2.539,56 $14.389.35 Adjusted book balance 5.09 $14.389.35