On the last day of the year, failed to record the S100 sale of hiking merchandise to a customer who paid with his Visa credit card. Visa charges Olson Sports a 3 percent fee.

b. On December 31, failed to write off a $3 bad debt.

c. Failed to record bad debt expense for the year. After the write-off in (b). Olson Sports calculated that $21 will likely be uncollectible, based on an aging of the accounts receivable.

d. The auditor noted that the inventory is listed on the trial balance using the weighted average cost method. However, it should be measured using the first-in, first-out method. Beginning inventory was 15 units at $10 per unit, the April 10 purchase was 40 units at $11 per unit, the July 2 purchase was 52 units at $13 per unit, and the October 4 purchase was 28 units at $16 per unit. The count of inventory on hand at the end of the year was 35 units.

e. Failed to record $10 in new store fixtures (equipment) that arrived at Olson Sports's shipping dock during the last week of the year, with payment due to the manufacturer within 30 days. Olson Sports paid $1 cash for delivery and S3 to install the new fixtures. These amounts were not recorded either.

f. On December 31, failed to record the sale of old computers (equipment) with a cost of $20 and a carrying amount of $8 for $3 cash.

When they were sold, no depreciation had been recorded for the year. Olson Sports depreciates computer equipment using the straight-line method with a residual value of $4 over a four-year useful life. (Hint: Prepare two entries.)

g. Failed to amortize the accounting software that Olson Sports purchased at the beginning of the year. It is estimated to have a three-year useful life with no residual value. The company does not use a contra-account for this asset.

h. Failed to record the annual depreciation for the building and furniture (equipment):

The building is depreciated using the straight-line method with a residual value of $9 over a 20-year useful life.

Furniture costing $120 is depreciated using the double declining-balance method with a residual value of $20 over a 10-year useful life. The accumulated depreciation of the furniture at the beginning of the year was $60.

a