Question
Make Journal Entries for the following: 1. It is estimated that 5% of the year-end accounts receivables may not be collected and half of these
Make Journal Entries for the following:
1. It is estimated that 5% of the year-end accounts receivables may not be collected and half of these were in British Columbia (BC). BOFL has never had a problem with collections before.
2. The company received $50,000 of organic food on January 3, 2023, that had been shipped by the supplier on December 29, 2022, FOB shipping point. This inventory was not included in the inventory reported on the unadjusted trial balance.
3. Distribution & Warehouse utility expense invoices for December 2022 amounting to $21,000 were received on January 2, 2023, and were paid on January 31, 2023. They have not yet been recorded.
4. The depreciation for 2022 has been calculated correctly but not yet recorded and is as follows:
Buildings $75,000
Warehouse equipment - $60,000
Office and storage equipment $40,000
5. The inventory count on December 31, 2022, included $38,000 of organic food inventory that was past its expiry date and not saleable. It could not be returned to suppliers. This inventory is included in the inventory reported on the unadjusted trial balance and no adjustment was made in the accounts.
6. On July 1, 2022, the company renewed its annual insurance policy and paid the full $28,000. The full amount was expensed on that date. The prepaid insurance account in the trial balance relates to the same insurance policy.
Beaument Organic Foods Ltd. Income Statement Year ended December 31Step by Step Solution
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