Sales Revenue $ 310,000

Freight-In 8,500

Sales Discounts 6,000

Cost of Goods Sold 98,400

Merchandise Inventory 103,000

Sales Returns 17,100

Freight-Out 3,800

What accounting principles cause a company to prepare adjusting journal entries?

Twilight Co. started operations in 2017 and has the following information at the end of June, 2021: $420,000 in its Accounts Receivable and $2,000 debit balance in its Allowance for Uncollectible Accounts. Credit sales for the quarter were $3,200,000 and cash sales of $1,440,000. Twilight Co. estimates its bad debts to be 3.5% of credit sales. What is the amount of Bad Debt Expense for the month?

On May 1, Marie Company purchased new machinery for $70,000 plus 8% sales tax. The machinery was advertised for $72,000. Other costs associated with the machinery were: testing of the new machine, $2,000; delivery cost of $3,600; installation cost, $5,500; and hiring of a new employee to run the machine at $2,880/month. At what amount will the machinery be recorded on a balance sheet?