Question
Sage Inc. experienced the following transactions for 2000, its first year of operations: Issued common stock for $50,000 cash. Purchased $140,000 of merchandise on account.
Sage Inc. experienced the following transactions for 2000, its first year of operations:
Issued common stock for $50,000 cash.
Purchased $140,000 of merchandise on account.
Sold merchandise that cost $110,000 for $250,000 on account.
Collected $236,000 cash from accounts receivable.
Paid $118,000 on accounts payable.
Paid $50,000 of salaries expense for the year.
Paid other operating expenses of $28,000.
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 | $ | 10,000 | 0.01 | |||
| 030 | 2,000 | 0.05 | ||||
| 3160 | 1,200 | 0.10 | ||||
| 6190 | 500 | 0.20 | ||||
| Over 90 days | 300 | 0.50 | ||||
Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Glencoe Accounting Concepts Procedures Applicatons
Authors: McGraw-Hill Education
3rd Edition
0028036174, 978-0028036175
