The Fashion Rack The Fashion Rack is a retail merchandising business that sells trendy clothing at discounted prices. The business is owned and managed by Cady Heron who started the business on April 1, 2021. The Fashion Rack has a monthly accounting period. The employees are paid at the end of the month. The Chart of Accounts is shown below. The Fashion Rack Chart of Accounts 101 Assets Cash Revenues 401 Sales 111 Accounts Receivable 402 Sales Returns and Allowances 112 Allowance for Doubtful Accounts 403 Sales Discounts 121 Merchandise Inventory Cost of Sales 131 Supplies 501 Purchases 133 Prepaid Advertising Expense 502 Freight In 134 Prepaid Insurance Expense 503 Purchases Returns and Allowances 141 Equipment 504 Purchases Discounts 142 Accumulated Depreciation - Equipment Expenses 143 Furniture 611 Freight Out 144 Accumulated Depreciation - Furniture 612 Advertising Expense Liabilities 613 Insurance Expense 203 Accounts Payable 614 Interest Expense 221 Utilities Payable 615 Janitorial Services Expense 222 Interest Payable 616 Rent Expense 231 Notes Payable 617 Salaries Expense Owner's Equity 618 Supplies Expense 301 Heron, Capital 619 Utilities Expense 302 Heron, Drawing 631 Depreciation Expense - Equipment 399 Income Summary 632 Depreciation Expense - Furniture 641 Uncollectible Accounts Expense