insurance policy. On Apil the on the information below, yournalize the entries for the Seller and the Buyer. Both use a perpetual inventory (a) Selier selis Buyer on account merchandise costing $245 for $645, terms 2/10, net 30, FOB destination. The freight (b) Buyer returns as defective $145 worth of the $645 merchandise received. The seller's cost is $70 (c) Buyer pays within the discount period Seller Accounts charge is $45. Buyer DR DRCR 6. The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30, 2010. After the journals for June had been posted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation and required journal entries on the basis of the following reconciling items: Cash sales of $742 had been erroneously recorded in the cash receipts journal as $724 (a) (b) Deposits in transit not recorded by bank, $425.00 (c) Bank debit memo for service charges, $35.00 (d) Bank credit memo for note collected by bank, $2,47s including $75 interest (e) Bank debit memo for $256.00 NSF (not sufficient funds) on aecks outstanding, %1,860.00. Answer check from Janice Smith, a customer, the following transactions for Solley Company that occurred during 2011 and 2012 14,2011 Received a $4,800.00, 90-day, 9% note from, Alan Hibbetts in payment of his acount. 31, 2011 Accrued interest on the Hibbetts note. 12, 2012 Received the amount due from Hibbetts on his note Post Debit Ref Date Credit 10. Providence Medical Center bought equipment on January 2, 2013, for $15,000 The equipment was expected to remain in service for four years and to perform 1,000 surgeries. At the end of the equipment's useful life, Providence estimates that its residual value will be $3,000. The equipment performed 100 surgeries the first year, 300 the second year, 400 the third year, and 200 the fourth year. Prepare a schedule of depreciation expense per year for the equipment under the three methods. Straight los Year 1: Year 2: Year 3: Year 4: Year 1: Year 2: Year 3: Year 4: Year 1: Year 2: Year 3: Year 4: 11. Stagecoach V period. The estimated salvage an tear on the building would force the company to replace it before 40 began depreciating the building over a revised total life of 30 years and $175,000. Recoerd depreciation expense on the building for years 15 and 16 Van Lines purchased a building for $700,000 and depreciated it on a straight-line basis for over a 40-year value was $100,000. After using the building for 15 years, Stagecoach realized that wear years. Starting with the 16 year, Stagecoach increased the estimated salvage value to Year 15 Year 16