Sage Inc experienced the following transactions for 2018, its first year of operations Issued common stock for $100,000 cash Purchased $200,000 of merchandise on account Sold merchandise that cost $154,000 for $306,000 on account Collected $276,000 cash from accounts receivable Paid $180,000 on accounts payable Paid $48,000 of salaries expense for the year Paid other operating expenses of $64,000 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 $ 18,000 0 01 030 7,500 0 05 3160 1,500 0 10 6190 1,500 0 20 Over 90 days 1,500 0 50 Organize the transaction data in accounts under an accounting equation (Enter any decreases to account balances with a minus sign If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank ) SAGE INC Accounting Equation for the Year 2018 Event Assets Liabilities Equity Accounts Titles for Retained Earnings Cash Accounts Receivable Allowance Merchandise Inventory Accounts Payable Common Stock Retained Earnings 1 2 3a 3b 4 5 6 7 8 Bal Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Sage Inc for 2018 Prepare the income statement for Sage Inc for 2018 Prepare the statement of changes in stockholders equity for Sage Inc for 2018 Prepare the balance sheet for Sage Inc for 2018 (Be sure to list the assets in the order of their liquidity ) Prepare the statement of cash flows for Sage Inc for 2018 (Amounts to be deducted should be indicated with a minus sign ) What is the net realizable value of the accounts receivable at December 31, 2018 Net realizable value

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 28, 2024

Sage Inc. experienced the following transactions for 2018, its first year of operations:

Issued common stock for $100,000 cash.
Purchased $200,000 of merchandise on account.
Sold merchandise that cost $154,000 for $306,000 on account.
Collected $276,000 cash from accounts receivable.
Paid $180,000 on accounts payable.
Paid $48,000 of salaries expense for the year.
Paid other operating expenses of $64,000.
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	$	18,000	0.01
030		7,500	0.05
3160		1,500	0.10
6190		1,500	0.20
Over 90 days		1,500	0.50

Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.)

SAGE INC.

Accounting Equation for the Year 2018

Event

Assets

Liabilities

Equity

Accounts Titles for Retained Earnings

Cash

Accounts Receivable

Allowance

Merchandise Inventory

Accounts Payable