Novak Furniture Limited reports the following information for 11 months of the year in its February 28, 2021, trial balance. The company's year end is March 31. Credit NOVAK FURNITURE LIMITED Trial Balance February 28, 2021 Debit Cash $67,600 Accounts receivable 364,000 Inventory 2,860,000 Supplies 7,800 Prepaid rent 5.200 Equipment 150,800 Accumulated depreciation-equipment Accounts payable Deferred revenue Bank loan payable Common shares Retained earnings Dividends declared 52,000 Sales Cost of goods sold 3,997,656 Advertising expense 78,000 Freight out 187,200 Office expense 27,040 Rent expense 57,200 Salaries expense 374,400 Travel expense 13,000 Utilities expense 20,800 Interest expense 28,080 Income tax expense 156,000 $8,446,776 $30,160 1,612,000 36,400 468,000 208,000 572,520 5,519,696 $8,446,776 Novak Furniture incurred the following transactions for the month of March. The company uses a perpetual Inventory system Mar. 1 2 5 6 7 8 9 9 12 Received $130,000 on account from a major customer. Paid a supplier an amount owing of $208,000, taking the full discount, terms 2/10,n/30. Purchased merchandise from a supplier, $312,000, terms 2/10,n/30, FOB destination. Recorded cash sales, $296,400. The cost of goods sold for these sales was $208,000. Returned scratched merchandise to the supplier from the March 5 purchase. 526,000. The appropriate company paid freight for the March 5 purchase $7,800. Sold $208,000 of merchandise on account, terms 2/10, 1/30, FOB destination. The cost of goods sold was $145,600. Management estimated that sales returns will be 12% of sales. The appropriate company paid freight for the March 9 sale $5,200. Ordered custom merchandise for a local designer totalling $52,000. Received $13,000 as a deposit. Accepted returned merchandise from the sale on March 9. $20,800. The cost of the goods returned to inventory was $14,560. Paid for the merchandise purchased on March 5, net of merchandise returns on March 7. Paid salaries of $46,800. Recorded cash sales, $265,200. The cost of goods sold for these sales vas $186.160. No returns were anticipated related to these sales. Paid salaries of $52,000. Received payment of merchandise sold on March 9, net of merchandise returns on March 13. Paid rent, $5,200. 13 14 16 20 27 29 30 (a) Record the March transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) Debit Date Account Titles and Explanation March 1 Cred 2 a) Record the March transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) Debit Cred Date Account Titles and Explanation March 1 2 5 6 I (To record sale) 6 (To record cost of merchandise sold) 7 B 9 (To record credit) 9 Question 3 of 3 > - /5 9 (To record credit sale) 9 (To record cost of merchandise) (To record payment of freight on goods sold) 12 13 (To record return of goods) 13 (To record cost of merchandise returned) 14 16 20 (To record sale) 20 (To record cost of merchandise sold) 27 16 20 (To record sale) 20 (To record cost of merchandise sold) 27 29 30
