Question
Please do not copy from other chegg answers Dhrubo Design SAANVI owns Dhrubo Design, a small and successful firm. She uses the allowance method for
Please do not copy from other chegg answers
Dhrubo Design
SAANVI owns Dhrubo Design, a small and successful firm. She uses the allowance method for bad debts, FIFO valuation for its periodic merchandise inventory system, and the straight method to depreciate plant assets on a monthly basis.
Relevant account balances as of December 1, 20Xl, are as follows:
Account Debit Credit
Allowance for Doubtful Accounts $3,200
Accounts Payable
Empire Company $350
Livingston Company 950
Jesse Zealiff 800
Directions:
Record the following selected transactions in a general journal.
Dec 1. Issued Check No. 110 to Black Company for a 9%, 120-day note due today. t The face value of the note is $1,500.
Dec 1. Received a 90-day, 8% note for $2,400 from DAVID as partial payment on account.
Dec 9. Purchased merchandise from Evans Company as follows: 1,200 units & $10; terms, 2/ 10,n/30.
Dec 18 Issued Check No. 115 to pay the purchase of December 9.
Dec 20 Carol Davis, whose account was written off last year, paid the $750 balance due to us. Reinstated the account and recorded the collection.
Dec 24 Purchased merchandise from Evans Company as follows: 1,000 units @ $10.20; terms 2/10, n/30.
Dec 26 Issued Check No. 117 to the owner for a cash withdrawal of $500.
Dec 31 Recorded interest accrued on the note of December 1.
Dec 31 Adjusted for merchandise inventory. A total of 1,700 units are on hand. There was no beginning inventory.
Dec 31 Recorded accrued salaries. Weekly salaries for a five-day week amount to $50,000. The year 20X1 ended on a Monday, with salaries to be paid the following Monday.
Dec 31 Aged the accounts receivable and adjusted the Allowance for Doubtful account to a balance of $3,900.
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