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Sage Inc. experienced the following transactions for 2018, its first year of operations 1. Issued common stock for $120,000 cash 2. Purchased $190,000 of merchandise
Sage Inc. experienced the following transactions for 2018, its first year of operations 1. Issued common stock for $120,000 cash 2. Purchased $190,000 of merchandise on account. 3. Sold merchandise that cost $160,000 for $318,000 on account. 4. Collected $284,000 cash from accounts receivable 5. Paid $170,000 on accounts payable 6. Paid $54,000 of salaries expense for the year 7. Paid other operating expenses of $70,000 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule Percent Likely to Be Allowance Number of Days Past Due Uncollectible 0.01 0.05 0.10 0.20 0.50 Amount Balance Current 0-30 31-60 61-90 Over 90 days $20,400 8,500 1,700 1,700 1,700 b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Sage
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