"Prepare journal entry for following event for Cotton Wood Company

1.January 2, 2010 Employees are paid bi-monthly on the first day of the month for work performed during the last half of the previous month (because of the New Year's holiday, this month they are paid on the 2nd), and on the 16th for work done during the first half of the current month. Total wages paid on this date were $20,400.

2. Jan 2 Cottonwood signed and paid for an annual advertising agreement with the PRCA for banner ads on the PRCA website. Cottonwood's advertisements will be posted to the website starting in March 2007 and run until February 28, 2008. The contract cost is $7,200 plus any art and setup charges, which will be billed as they occur.

3. January 3, 2010 Cottonwood's office manager picked up office supplies from Office Max on her way into work. She checked the orders against Cottonwood's purchase order and stocked the supplies in the supply cabinet. The Office Max invoice totaled $362 and payment terms are net the 15th of the month.

4. Cottonwood received a check for $12,620 on Jan 7 from one of their customers as payment for a previous order.

5. Jan 7 Cottonwood received a shipment of event merchandise from the Rodeo Outfitters Company. This merchandise was ordered on December 20th and was delivered by Viking Freight. Rodeo Outfitters paid Viking for the shipping charge of $882. Cottonwood is to pay Rodeo Outfitters $92,000 based on terms of 2/10 net 30.

6. Jan 7Cottonwood received their new product catalogs ordered from a local print shop. The print shop billed Cottonwood $6,000 for 5,000 catalogs with payment terms of net 10. Cottonwood considers catalogs as advertising and expenses the catalogs at the end of the month based on how many catalogs are sent out during the month.

7 January 4, 2010 Cottonwood received an order from the FFA rodeo in LaJunta Colorado, (LJ FFA), for $19,820 in event merchandise. The Cottonwood customer service representative confirmed that the LJ FFA Rodeo's account was paid current and they had sufficient credit available to cover the new sale. The order was then sent to the warehouse where it was picked and prepared for shipping. The merchandise was shipped via UPS at a cost of $170, which was paid by Cottonwood. Cost of the merchandise shipped was $12,584. Terms of the sale are net 30.

8 January 5, 2010 Cottonwood placed a purchase order with the Lazy J Ranchers Emporium for $76,000 in resale merchandise. Payment terms to Lazy J Ranchers are net 30 upon receipt of goods.

9 Cottonwood paid an outstanding vendor invoice of $16,050.

10 Cottonwood paid the December telephone bill to AT&T in the amount of $428. Expenses are usually accrued at the end of the month as "other accrued expenses payable".

11 January 8, 2010 Cottonwood hired an additional employee for the warehouse. She starts work today. As with all of the other employees, this employee will be paid bi-monthly at a rate of $2,400 per month.

12 Cottonwood received an order from the Del Norte County Rodeo in Trinity, CA for $18,000 of resale merchandise. This is a new rodeo with no credit history. Cottonwood has requested payment in full prior to the delivery of goods. The cost of the goods ordered is $10,440.

13 One of Cottonwood's sales reps sold event merchandise to the Dust Bowl Rodeo in Kansas for a total sales amount of $126,000. Terms of the sale are net 15 and will be paid by electronic funds transfer (EFT). The order information was sent to the warehouse where the merchandise was picked and packaged for shipment. The order was picked up by CWX Freight lines and shipping costs of $685 were paid by Cottonwood at the time of shipment. Cost of the merchandise shipped was $80,600.

14 Cottonwood received customer checks totaling $28,400 for payment on outstanding accounts.

15 January 9, 2010 Cottonwood paid the December's Pacific Gas & Electric (PG&E) bill in the amount of $2,110 using their bank's automated bill payment system.

16 A wire transfer in the amount of $18,000 is received from the Del Norte County Rodeo for payment of the order placed on January 8th. The goods are picked, packaged and shipped via UPS. Cottonwood has an account with UPS and will pay the shipping costs of $112 for this order. UPS' payment terms are net 7 days.

17 Alamo Conference Center in Texas placed an order via email. Cottonwood's sales rep wrote up the order checked their credit and sent the order information to the warehouse for shipping. The sale amount was $102,240, which included $80,100 in resale merchandise and $22,140 in event merchandise. The cost of the resale merchandise was $51,264 and the cost of the event merchandise was $11,513. The goods were shipped that day. Cottonwood paid the shipping expense of $1,502. Payment terms for the order are net 15.

18 January 10, 2010 Cottonwood's warehouse received the January 5th order from Lazy J Ranchers Emporium. The inventory was counted and placed on the shelves. Proof of receipt and the vendor's invoice was sent to accounting. Lazy J paid the shipping of $1,190.

19 January 11, 2010 Cottonwood placed a purchase order with a local vendor for the new industrial shelving for the warehouse that was approved in Cottonwood's budget. The total price for the shelving is $24,000 plus 7.25% sales tax. Installation costs are quoted at $1,200. Vendor payment terms are net 10.

20 The Bozeman Convention Center, (BCC), in Montana contacted Cottonwood with an order for $21,000 in resale merchandise. Cost of the merchandise was $13,440. BCC has never purchased from Cottonwood before, but has already submitted the appropriate paperwork to Cottonwood's credit department.

21 January 12, 2010 Cottonwood's credit department approved BCC for up to $15,000 credit at terms of net 15. BCC has been asked to send payment of $6,000 so that their order can be shipped.

22 Cottonwood paid Office Max for the supplies picked up on January 3rd.

23 Cottonwood paid for their printed catalogs received January 3rd.

24 Cottonwood paid the invoice for the shipment from Rodeo Outfitters received on January 3rd and took the 2% discount because of early payment.

25 January 15, 2010 after extensive collection effort including having a collection agency contact the party, Cottonwood was notified today that the Fly-by-Knight Rodeo has gone out of business. They owed Cottonwood $3,500 on account. Cottonwood now deems that debt as being uncollectible and removes it from their books.