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The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 31, 2019, the firm's general ledger contained the
The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 31, 2019, the firm's general ledger contained the accounts and balances that appear below.
The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 31, 2019, the firm's general ledger contained the accounts and balances that appear below ACCOUNTS AND BALANCES Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Prepaid Advertising Store Equipment Accumulated Depreciation-Store Equipment Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Beth Argo, Capital Beth Argo, Drawing Sales Sales Retur Purchases Purchases Returns and Allowances Rent Expense Telephone Expense Salaries Expens3e Payroll Taxes Expense Income Summary Supplies Expense Advertising Expense Depreciation Expense-Store Equipment Depreciation Expense-office Equipment Uncollectible Accounts Expense S 6,000 Dr 2,900 Dr 55 Cr 11,600 Dr 1,230 Dr 960 Dr 8,280 Dr 1,530 Cr 1,780 Dr 310 Cr 2,655 Cr 460 Cr 95 Cr 26,987 Cr 20,300 Dr 91,548 Cr. ns and Allowances 1,130 Dr 47,300 Dr 460 Cr 6,300 Dr 620 Dr 14,400 Dr 1,300 Dr ADJUSTMENTS a.-b. Merchandise inventory on December 31, 2019, is $12,621. c. During 2019, the firm had net credit sales of $38,000; the firm estimates that 0.6 percent of these sales will result in uncollectible accounts d. On December 31, 2019, an inventory of the supplies showed that items costing $290 were on hand e. On October 1, 2019, the firm signed a six-month advertising contract for $960 with a local newspaper and paid the full amount in f. On January 2, 2018, the firm purchased store equipment for $8,280. At that time, the equipment was estimated to have a useful g. On January 2, 2018, the firm purchased office equipment for $1,780. At that time, the equipment was estimated to have a useful advance life of five years and a salvage value of $630 life of five years and a salvage value of $230
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