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Victoria Company balance sheet at December 31, 2013, is presented below VICTORIA COMPANY Balance Sheet December 31, 2013 Cash Accounts receivable Allowance for doubtful accounts
Victoria Company balance sheet at December 31, 2013, is presented below VICTORIA COMPANY Balance Sheet December 31, 2013 Cash Accounts receivable Allowance for doubtful accounts Inventory $8,620 19,500 15,690 $14,810 Accounts payable 20,500 Common stock (850) Retained earnings 9,350 $43,810 $43,810 During January 2014, the following transactions occurred. Victoria uses the perpetual inventory method Victoria accepted a 4-month, 8% note from Leon Company in payment of Leon's $2,400 account. Victoria wrote off as uncollectible the accounts of Barker Corporation ($400) and Elmo Company ($300) Jan. 1 3 8 Victoria purchased $17,260 of inventory on account. 11 Victoria sold for $26,000 on account inventory that cost $17,240 15 Victoria sold inventory that cost $700 to Joe Haribo for $1,300. Haribo charged this amount on his Visa First Bank card. The service fee charged Victoria by First Bank is 396 17 Victoria collected $21,900 from customers on account. 21 Victoria paid $16,120 on accounts payable 24 Victoria received payment in full ($300) from Elmo Company on the account written off on January 3 27 Victoria purchased advertising supplies for $1,420 cash 31 Victoria paid other operating expenses, $3,270 Adjustment data: 1. 2, 3, Interest is recorded for the month on the note from January 1 Bad debts are expected to be 5% of the January 31, 2014, accounts receivable A count of advertising supplies on January 31, 2014, reveals that $490 remains unused
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