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Required information Skip to question [The following information applies to the questions displayed below.] Sage Incorporated experienced the following transactions for Year 1, its first

Required information

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[The following information applies to the questions displayed below.]

Sage Incorporated experienced the following transactions for Year 1, its first year of operations:

  1. Issued common stock for $100,000 cash.
  2. Purchased $190,000 of merchandise on account.
  3. Sold merchandise that cost $158,000 for $314,000 on account.
  4. Collected $278,000 cash from accounts receivable.
  5. Paid $170,000 on accounts payable.
  6. Paid $64,000 of salaries expense for the year.
  7. Paid other operating expenses of $80,000.
  8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule:
Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance
Current $ 21,600 0.01
030 9,000 0.05
3160 1,800 0.10
6190 1,800 0.20
Over 90 days 1,800 0.50

b. Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Sage Incorporated for Year 1.

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