Record the August transactions and adjustments. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Blossom French Modern Retailers Ltd. has been in operation for several years. It wholesales furniture to its customers. The company's ost-closing trial balance at July 31,2021 , the end of its fiscal year, is presented below: The company had a limited amount of business activity in August 2021 because of holidays for both the company and its major customers. You have been hired on a temporary basis to update the company's records for August. The August transactions and adjustments are presented below: Aug. 1 Paid $19,500 for office expenses and $3,323 for the August rent. 2 Accepted a six-month, 8\% note in exchange for Chen Enterprises' overdue account receivable of $103,500. 3 Sale on account to Chavier Ltd. for $501,200. Cost of goods sold, $258,930. The company uses a perpetual inventory system and estimates that inventory sold for $50,000 (cost $27,000 ) will likely be returned. 8 Determined that an account receivable from Densmore Ltd. of $66,600 is uncollectible. 9 A \$294,000 partial payment on account was received from Chavier (see August 3 transaction). 10 Old equipment was sold for $5,620. The equipment's original cost was $59,930; accumulated depreciation to the date of disposal was $49,143. 14 Paid a $9,710 income tax instalment. 21 Purchased a patent for $23,520 cash. The estimated useful life of the patent is five years; the legal life, 20 years. 28 Inventory sold on credit for $60,000 and costing $32,400 was returned by customers. 31 Recorded cash received from sales for the month, $77,070. The cost of goods sold is $33,660. 31 The monthly bank statement revealed the following unrecorded items: interest on bank loan, $1,600, and bank service charges, \$1,217. 31 Reviewed outstanding accounts receivable. Determined, through an aging of accounts, that doubtful accounts totalled $303,450 at month end. 31 Recorded depreciation for the month on the remaining equipment that cost $136,800 and is still in use. Useful life of all equipment is estimated to be four years with no residual value. The straight-line method of depreciation is used and depreciation is calculated to the nearest month. 31 Recorded and paid salaries for the month, $93,400. 31 Accrued interest on the Chen Enterprises note receivable (see August 2 transaction). 31 Recorded amortization on the patent (see August 21 transaction). A full month's amortization is recorded on any intangible assets acquired during the month
