The chart is attached.

1.How much of Accounts Receivable were written off the month? (Hint: Run the ADA t-account)

2. What is Fargos Net Realizable Value of Accounts Receivable at the end of July?

3. How much cash was paid on Accounts Payable during the month? Assume the beginning balance of Accounts Payable in July was zero.

4. If all vendors sell to Fargo on terms 2/10, n/30, what was the total amount of purchases discounts which were allowed to lapse. No purchases were made in the last 10 days of July.

5. If there was no prepaid advertising at the beginning of the period, what was the total cash outlay for advertising in July? (Hint: Think of converting from accrual basis to cash basis.)

6. How much cash received on accounts receivable in July? (Hint: Run the AR t-account)

7. What is the amount of the change to Income Summary account for the closing entry to close nomianl accounts with a normal debit balance at July 31.

8. What is the amount of the change to Income Summary account for the closing entry to close Income Summary to Retained Earnings at July 31.

9. After you have adusted inventory and done the four closing entries for the month, what is the ending balance in Retained Earnings on July 31?

ACG 340 Case 3: Fargo The adjusted trial balance of Fargo Company as of July 31, 2016 is presented below. (Read that again, think about what that means about where Fargo is in the accounting cycle.) Notice that the total debits and credits for each account are indicated (including the beginning balances) rather than the usual account balance. For example, the cash account had transactions which resulted in a total of $67,700 debits (including the beginning balance) and a total of $55,400 credits. All adjusting entries have been made for the month of July 2016, except the adjustment for inventory. Fargo's fiscal year end is June 30. Account Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Advertising Office Supplies on Hand Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable Interest Payable Dividends Payable Notes Payable Common Stock Paid-In Capital in Excess of Par Retained Earnings Dividends Declared Sales Sales Returns Sales Discounts Purchases Purchase Returns and Allowances Purchase Discounts Salaries Expense Office Supplies Expense Insurance Expense Advertising Expense Bad Debt Expense Miscellaneous Expense Depreciation Expense Interest Expense Gain on Sale of Office Equipment Totals Debit $67,700 58,000 700 60,000 1,200 1,700 22,000 400 31,900 4,000 3,000 Credit $55,400 54,400 1,100 400 1,300 1,500 7,600 40,000 800 100 8,200 30,000 12,600 20,000 19,900 7,200 61,000 2,200 500 42,000 900 400 9,200 1,300 700 600 500 400 300 300 $315,800 200 $315,800