Total gross sales for the period include the following: Credit card sales (discount 2 % ) Sales on account (2/15, n/60) S 10.000 $ 10,200 Sales returns related to sales on account were $200. All returns were made before payment. One-half of the remaining sales on account were paid within the discount period. The company treats all discounts and returns as contra-revenues. What amount will be reported on the income statement as net sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net sales The following transactions were selected from among those completed by Cadence Retailers November and December: Nov. 20 Sold 20 items of merchandise to Customer B at an invoice price of $5,500 (total); terms 3/10, n/30. 25 Sold two items of merchandise to Customer C, who charged the $700 sales price on her Visa credit card. Visa charges Cadence Retailers a 3 percent credit card fee. 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $9,400 (total); terms 3/10, n/30. 29 Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer. Dec. 6 Customer D paid the account balance in full. 20 Customer B paid in full for the invoice of November 20 Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31. (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.) Net sales During the current year, Adams Assembly, Inc., recorded credit sales of $780,000. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales. Required: Prepare journal entries for each transaction: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. On September 29 of the current year, an account receivable for $2,600 from March of the current year was determined to be uncollectible and was written off b. The appropriate bad debt expense adjustment was recorded for the current year View transaction list Journal entry worksheet 2 Record the entry to write-off the uncollectible account. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Record entry Clear entry Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $50,200, (2) up to 180 days past due, $15,700, and (3) more than 180 days past due, $5,300. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 4 percent, (2) 12 percent, and (3) 31 percent, respectively. At December 31, end of the current year, the Allowance for Doubtful Accounts balance is $100 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting journal entry for the current year. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjusting journal entry for bad debt expense. Note: Enter debits before credits. Date General Journal Debit Credit December 31 View general journal Record entry Clear entry 2. Show how the various accounts related to accounts receivable should be shown on the December 31 current year, balance sheet. (Amounts to be deducted should be indicated by a minus sign.) CASILDA COMPANY Partial Balance sheet As of December 31 Accounts receivable, net of allowance for doubtful accounts During the current year, Robby's Camera Shop had sales revenue of $166,000, of which $60,000 was on credit. At the start of the current year, Accounts Receivable showed a $18,000 debit balance, and the Allowance for Doubtful Accounts showed a $1,100 credit balance. Collections of accounts receivable during the current year amounted to $50,000. Data during the current year follows: a. On December 31 an Account Receivable (J. Doe) of $1,600 from a prior year was determined to be uncollectible; therefore, it was written off immediately as a bad debt. b. On December 31, on the basis of experience, a decision was made to continue the accounting policy of basing estimated bad debt losses on 3.0 percent of credit sales for the year Required: 1. Prepare the required journal entries for the two items on December 31, end of the accounting period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet