work 3 Chapter 6, 788 Problem 7-21A Multistep income statement and balance sheet LO 7-1, 7-5 Use the following information to prepare a multi-step income statement and a balance sheet for Sherman Equipment Co. for Year 2 (Hit Some of the items will not appear on either statement, and ending retained earnings must be calculated) (Balance Sheet only Items to be deducted must be indicated with a minus sign.) Salaries Expense Co Stock Notes Receivable (short tern) Allowance for Doubtful Accounts Uncollectible Accounts Expense Supplies Interest Revenue Sales Revenue Dividends Interest Receivable (short term) Beginning Retained Earnings $ 83,000 Operating Expenses 100,000 Cash Flow from Investing Activities 38,00 Prepaid Rent 9,209 Land 9,500 Cash 2,600 Inventory 6,800 Accounts Payable 376,000 Salaries Payable 4,900 Cost of Goods Sold 2,900 Accounts Receivable 88,000 $ 76,000 92,400 13,900 54,00 49,5ee 99,700 60,000 26,000 162,000 70,000 SHERMAN EQUIPMENT CO. Income Statement For the Year Ending December 31, Year 2 ch e Homework 3 - Chapter 6, 7&8 Check my work 5 Problem 7-24A Accounting for credit card sales and uncollectible accounts: Percent of receivables allowance method LO 7-2, 7-6 Northwest Sales had the following transactions in Yeart 1. The business was started when it acquired $70,000 cash from the issue of common stock 2 Northwest purchased $181,000 of merchandise for cash in Year 1. 3. During the year, the company sold merchandise for $191,500. The merchandise cost $105,325. Sales were made under the following terms 45,00 Cash sales 137,720 Credit card sales (The credit card company charges a 3.00 percent service fee.) 3,700 Sales on account 4. The company collected all the amount receivable from the credit card company. 5. The company collected $8,004 of accounts receivable. 6. The company paid $48,169 cash for selling and administrative expenses. Determined that 5.00 percent of the ending accounts receivable balance would be uncollectible. here to search RI e Complete this question by entering your answer Required B Required B Bal Required B Required B Inc Required A Stmt Stmt of Cash Stmt Sheet Stkholders Eq Flows Show the effect of these transactions on the financial statements using a horizontal statements mo Cach low column indicate whether the item is an operating activity (OA), investing activity (IA)