O MERCHANDISING AND INVENTORY = Merchandising: Amount received by seller with FOB Shipping... Carl 1/5 Bailey Company uses the gross method and a perpetual inventory system. Assuming the following entries, compute the amount that Bailey Company received on October 11. October 1 October 7 Sold goods costing $4,200 to Alexander Company on account, $7,000, terms 1/10, n/30. The goods are shipped FOB Shipping Point, Freight Prepaid by Seller, $130. Alexander Company returned undamaged merchandise previously purchased on account, $300. October 11 Received the amount due from Alexander Company. Amount due from Alexander Company on October $1 11: Davis Company had the following adjusted trial balance: 3/5 Carlee = ACCOUNTING CYCLE Closing entries Account Titles Debit Credit Cash 16,880 Accounts Receivable 7,710 Supplies 7,460 Equipment 53,560 Accumulated Depreciation 9,800 Accounts Payable 4,280 Deferred Rent Revenue 1,730 Capital Stock 23,900 Retained Earnings 23,500 Dividends 15,900 Commission Revenue 52,800 Rent Revenue 5,500 Depreciation Expense 5,200 Utilities Expense 9,700 Supplies Expense 5,100 Total 121,510 121,510 Required: Prepare the second closing entry to close the expense accounts to Income Summary. ? A Required: Prepare the second closing entry to close the expense accounts to Income Summary. Date Dec. 31 Account Title Debit Credit