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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 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 Returns and Allowances Purchases Purchases Returns and Allowances Rent Expense Telephone Expense Salaries Expense Payroll Taxes Expense Income Summary Supplies Expense Advertising Expense Depreciation Expense-Store Equipment Depreciation Expense-Office Equipment Uncollectible Accounts Expense $ 6,700 Dr 3,600 Dr. 62 Cr 12,300 Dr. 1,300 Dr. 1,080 Dr. 8,700 Dr 1,600 Cr. 2,200 Dr 380 Cr. 2,725 Cr 530 Cr. 88 Cr 30,677 Cr 21,000 Dr. 95,048 Cr 1,200 Dr. 49,400 Dr 530 Cr. 7,000 Dr 690 Dr. 15,100 Dr 1,370 Dr ADJUSTMENTS a.-b. Merchandise inventory on December 31, 2019, is $13,321 c. During 2019, the firm had net credit sales of $45,000; the firm estimates that 0.5 percent of these sales will result in uncollectible accounts d. On December 31, 2019, an inventory of the supplies showed that items costing $325 were on hand e. On October 1, 2019, the firm signed a six-month advertising contract for $1,080 with a local newspaper and paid the full amount in advance f. On January 2, 2018, the firm purchased store equipment for $8,700. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $700
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