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On January 1, 2021, the general ledger of Boomer Company includes the following account balances: Accounts Debit Credit Cash $ 78,000 Accounts Receivable 48,000 Allowance
On January 1, 2021, the general ledger of Boomer Company includes the following account balances: Accounts Debit Credit Cash $ 78,000 Accounts Receivable 48,000 Allowance for Uncollectible Accounts $ 5,000 Inventory 38,000 Building 78,000 Accumulated Depreciation 18,000 Land 208,000 Accounts Payable 28,000 Notes Payable (8%, due in 3 years) 42,000 Common Stock 108,000 Retained Earnings 249,000 Totals $ 450,000 $ 450,000 The $38,000 beginning balance of inventory consists of 380 units, each costing $100. During January 2021, the following transactions occurred: January 2 Received a $28,000 6-month, 6% note on a loan Boomer made to Cowboys, Inc. January 5 Purchased 4,300 units of inventory on account for $473,000 ($110 each) with terms 1/10, n/30. January 8 Returned 110 defective units of inventory purchased on January 5. January 15 Sold 4,100 units of inventory on account for $533,000 ($130 each) with terms 2/10, n/30. Record 2 entries for this transaction. January 17 Customers returned 300 units sold on January 15. These units were originally purchased by Boomer on January 5. The units were placed in inventory to be sold in the future. Record 2 entries for this transaction. January 20 Received cash from customers on accounts receivable. This amount includes $44,000 from 2020 plus amount receivable on sale of 3,500 units sold on January 15. January 21 Wrote off remaining accounts receivable from 2020. January 24 Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from purchase of 3,900 units on January 5. January 28 Paid cash for salaries during January, $36,000. January 29 Paid cash for utilities during January, $18,000. January 30 Paid dividends, $4,000. The following information is available on January 31, 2021 for adjusting entries at the end of the month. Boomer estimated that 10% of the January 31 accounts receivable balance will not be collected. Accrued interest on notes receivable for January. Accrued interest on notes payable for January. Accrued income taxes at the end of January for $5,800. Depreciation on the building, $2,800
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