Travis Company purchased merchandise on account from a supplier for $7,400, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period. Prepare the journal entry assuming a perpetual inventory system Madison Company's perpetual inventory records indicate that $875,300 of merchandise should be on hand on October 31. The physical inventory indicates that $781,900 is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Madison Company for the year ended October 31. Prepare and income statement, statement of owners equity and balance sheet for Rabid Insect based on the information below Salary Expense 28,500.00 Rent Expense 14,250.00 Insurance Expense 9,500.00 Depreciation Expense 4,750.00 Miscellaneous Expense 1,900.00 Sales Returns/Allowance 5,000.00 Sales Discounts 7,500.00 Cost of Goods Sold 142,500.00 Accts Payable 30,000.00 Sales 250,000.00 Equipment 400,000 Accum Depr - Equipment (160,000.00) Accts Receivable Mdse Inventory 20,000.00 60,000.00 Prepaid Insurance 10,000.00 Cash 100,000.00 Capital 1/1 (beginning) 187,500.00 Owner Drawing (5,415.00) Cost of Goods Sold 142,500.00 Note Payable 190,840.00 Interest Expense 1,805.00 Tax Expense 7,220.00 Three identical units of merchandise were purchased during July, as follows: Product Basic H Units Cost Purchase 1 35 Purchase 1 36 Purchase 1 37 3 $108 $36 Average cost per unit Assume one unit sells on July 28 for $45. Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using the (a) first-in, first-out, (b) last-in, first-out, and (c) average cost flow methods. Prepare a bank reconciliation for XYZ on 11/30 Balance per books 11/30 9,920 Balance per bank 11/30 12,170 Deposit in Transit 1,500 Outstanding Checks 1,710 Bank Service Charge 190 Note Collected by bank 2,230 CBC has accounts receivable at year end 620,000.00 credit Balance in allowance for doubtful accts 12,400.00 balance Sales on account for the year were 868,000.00 The company uses the % of receivables allownace method for bad debt Prepare the journal entry for bad debt expense at year end if 3% is the expected bad debt