Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $110,000 cash. 2. Purchased $185,000 of merchandise on account. 3. Sold merchandise that cost $164,000 for $326,000 on account. 4. Collected $290,000 cash from accounts receivable. 5. Paid $165,000 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: Percent Likely to Be Allowance Number of Days Past Due Amount Uncollectible Current $21,600 0.01 0-30 9,000 0.05 31-60 1,800 0.10 61-90 1,800 0.20 Over 90 days 1,800 0.50 Required Balance a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? Event Cash Assets NRV Accounts Receivable SAGE INC. Accounting Equation for the Year 1 Merchandise + Inventory Liabilities Equity Accounts Payable + Common Stock + Retained Earnings Accounts Titles for Retained Earnings + + = + II 6. 1. - N345 2. + 3a. + 3b. ++ 4. 5. + + + 7. + +++++++++ + = 8. Bal. 0+ 0+ 0 = = + = + = + + + = + + ++ ++ + + + + 0+ 0+ 0 Req A Req B Inc Stmt >