Keefe Variety Store had the following balances as of November 1 : The following selected transactions occurred at Keefe Variety Store during the month of (Click the icon to view the balances.) November: (Click the icon to view the transactions.) Read the requirements. explanations from any journal entries.) Now record the cost of goods sold for the sale of merchandise on November 3 . Requirements 1. Record Keefe's November transactions, including the cost of goods sold entries for each sale. 2. Calculate the net realizable value of accounts receivable as of November 30 . More info Accounts Receivable $4,900 Allowance for Uncollectible Accounts $370 credit balance More info November 3 Sold $350 of merchandise to Montague's Inc., which paid for the items in cash. The items cost Keefe $130. November 5 Sold $500 of merchandise to Lanning Co., which paid by credit card. The credit card company charges Keefe a fee of 2% on credit card sales. Keefe's cost of this merchandise was $140. November 10 Sold $1,500 of merchandise to Wakeman Point on account. Terms were 4/10, net 30 . Keefe's cost of this merchandise was $650. November 11 Sold $2,100 of merchandise to Aberle Shoppes on account. Terms were 4/10, net 30 . Keefe's cost of this merchandise was $1,420. November 12 Sold $930 of merchandise to Bahama River Inc., on account. Terms were 4/10, net 30 . Keefe's cost of this merchandise was $372. November 18 Wakeman Point reported that some of the merchandise received was in a different color than ordered so it returned $100 of the merchandise. The cost to Keefe was $40. November 20 Aberle Shoppes paid the balance of what it owed for the purchase on November 11. November 22 Bahama River Inc., returned $280 of the merchandise for a refund. Keefe's cost of the returned merchandise was $112. November 22 Bahama River Inc., paid the remaining balance owed for the November 22 Bahama River Inc., paid the remaining balance owed for the purchase on November 12. November 23 Sold $5,200 of merchandise to Calgary Co. on account. Terms were 4/10, net 30 . Keefe's cost of this merchandise was $2,080. November 25 Wakeman Point paid the balance of what it owed for the purchase on November 10. November 26 Discovered that Edgar Enterprises, a customer owing $140 from a July transaction, declared bankruptcy and there is no chance of collection. Wrote off the balance of Edgar's account. November 27 Sold $500 of merchandise to Danos's One-Stop-Shop on account. Terms were 4/10, net 30. Keefe's cost of this merchandise was $150. November 1-30 Sales on account during the month of November for transactions not listed individually totaled $6,800. Cost of goods sold for these sales totaled $2,720. November 1-30 Credit card sales on account during the month of November for transactions not listed individually totaled $2,800. The credit card company charges Keefe a fee of 2% on credit card sales. Cost of goods sold for these sales totaled $890. November 1-30 Cash collections on account during the month of November for transactions not listed individually totaled $4,200. (No discounts were taken by these customers.) November 30 Keefe made the adjusting entries for the month to accrue for estimated future returns. Keefe estimates that 6% of total sales will be returned. Keefe assumes that cost of goods sold is 30% of sales. November 30 Keefe made an adjusting entry to estimate uncollectible account expense for the month of November. Keefe estimates its uncollectible-account expense as 2% of total credit (on account) sales for the month
