VOD VIDEO COMPANY, which uses the periodic inventory system, is a merchandising business that sells photography and video-related supplies and equipment Its trial balance as of November 30, 2019, its 11th month of operations, is found in the photo attached

Transactions for December, including adjusting entries information, are as follows:

Date Transaction

Dec 3 Sold merchandise to A for ₱30,000 less 2 on terms 2/10, n/30. Paid freight on merchandise sold, ₱1,000.

5 Issued credit memo to A for receipt of returned merchandise with incorrect specification, ₱4,000

6 Purchased merchandise from Z for ₱40,000 less 2 on terms 50% down, balance 2/10, n/30. Paid freight on merchandise bought, ₱800.
7 Collected 50% of outstanding customer account balance from previous months
8 Received credit memo from Z for allowance granted on merchandise bought, ₱2,000
12 Collected in full the outstanding account of A
16 Paid in full the outstanding account with Z
20 Paid ₱45,000 of November supplier’s account balance due today
31 Paid utility bills for the month, ₱15,000
31Sales salaries for the month totaled ₱50,000 while office salaries totaled ₱25,000. Of the total salaries, ₱10,000 remains unpaid as at year-end.
31The Prepaid Insurance Expense balance represents insurance for 15 months paid at the start of 2019 and effective on that date.
31 The Prepaid Rent Expense balance represents annual rent paid at the start of 2019 and effective on that date.
31 Only 25% of store supplies remain unused as at year-end.
31 One-fourth of Unearned Sales Revenue balance has been earned as at year-end.
31 The company estimates store furniture and equipment to have useful life of 12 years and residual value equal to 10% of cost. This was purchased at the start of the year.
31 It is company policy to maintain 5% of outstanding accounts receivable as doubtful of collection.

31 Based on physical count, ₱68,000 worth of merchandise are in inventory as of this date.

Journal entry:

Prepare the company’s adjusted trial balance as of December 31, 2019.
 
 
 
 
 

"Video Call: Preparing the Accounting Cycle for VOD VIDEO COMPANY" VOD VIDEO COMPANY, which uses the periodic inventory system, is a merchandising business that sells photography and video-related supplies and equipment Its trial balance as of November 30, 2019, its 11n month of operations, is found below: Account Title Cash Debit 9 385,000 50,000 Account No. Credit 110 112 Accounts Receivable 113 Allowance for Doubtful Accounts Merchandise Inventory, January 1, 2019 Prepaid Insurance Expense Prepaid Rent Expense Store Supplies Store Furniture and Equipment Accumulated Depreciation - Store Furniture and Equipment 35,000 90,000 115 117 118 216,000 20,000 380,000 119 123 124 Accounts Payable Salaries Payable 210 194,000 212 221 Unearned Sales Revenue 28,000 444,000 Von Dyke, Capital, January 1, 2019 Von Dyke, Drawing 310 311 40,000 410 Sales 2,888,000 411 Sales Returns and Allowances 22,000 33,000 412 Sales Discount 510 Purchases 1,222,000 511 Purchase Returns and Allowances 17,000 29,000 512 Purchase Discount Freight-in Sales Salaries Expense Advertising Expense Depreciation Expense - Store Furniture and Equipment 514 15,000 520 550,000 50,000 521 522 Store Supplies Expense Freight-out 523 524 13,000 529 Miscellaneous Distribution Costs 19,000 275,000 530 Office Salaries Expense 531 Rent Expense Utilities Expense 532 168,000 533 Insurance Expense Doubtful Accounts Expense Miscellaneous Administrative Expenses 534 539 17,000 699 Income Summary TAL B3,600,000 93,600,000