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what are the adjusting entries of these transactions 1- December 3: Byte purchased a Ricoh Color Copier for $4,900.00. The invoice number was 61298. Byte
what are the adjusting entries of these transactions
1-
December 3: Byte purchased a Ricoh Color Copier for $4,900.00. The invoice number was 61298. Byte paid 10% in cash and signed a three-year note for the remaining balance. Interest at a rate of 6% a year will be paid semiannually. |
The Ricoh Color Copier, part of the office equipment, is estimated to make 480,000 copies a year, have a useful life of 5 years and a salvage value of $900.00. During December, 9,750 copies |
were made. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. Calculate the depreciation for one month using the straight-line method of depreciation. |
2-
December 17: Byte was informed that Mr. Madoff who has an account with the company will never pay the $478.00 he owes. Record the transaction to write off Mr. Madoff's accounts receivable account using the allowance method. |
Byte's CPA indicated that the Allowance for Doubtful Accounts should be increased by 5.00% of the ending balance of the Accounts Receivable account. |
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