Sales 485,000

Sales Discounts 2,540

Sales Returns & Allowances 14,280 - 16,820
Net Sales 468,180

Merchandise Inventory, opening 240,000

Net cost of purchases
Purchases 680,000
Purchase Returns & Allowances 21,640
Purchase Discounts 5,800 - 27,440
Net purchases 652,560
Freight In 41,500 694,060
Total goods available for sale 934,060
Merchandise Inventory, closing - 215,000
Cost of goods sold 719,060

Accounts Receivable 11,000

Cash 15,000
Prepaid Insurance Expense 6,000
Supplies 4,000
Current assets 36,000
Salaries Expense 19,000 half
Depreciation Expense - building 12,000 half
Office supplies Expense 3,500
General and administrative epenses 34,500

Merchandise Inventory, opening 77,000

Net cost of purchases
Purchases 415,000
Purchase Returns & Allowances 39,000
Purchase Discounts 19,000 - 58,000
Net purchases 357,000
Freight In 42,000 399,000
Total goods available for sale 476,000
Net sales 532,000
Cost of goods sold - 395,000
Gross profit 137,000

Sales 600,000
Sales Returns & Allowances 33,000
Sales Discounts 35,000 - 68,000
Net Sales 532,000

Merchandise Inventory, opening 77,000

Net cost of purchases
Purchases 415,000
Purchase Returns & Allowances 39,000
Purchase Discounts 19,000 - 58,000
Net purchases 357,000
Freight In 42,000 399,000
Total goods available for sale 476,000
Merchandise Inventory, closing - 81,000
Cost of goods sold 395,000

List price 30,000

Trade discount - 12,000
Invoice price 18,000
FOB DP, collect - 700
Accounts Receivable 17,300

Principal 200,000 September 16

Interest income 4,000 October 31
Maturity value 204,000 November 5
Interest expense - 3,468 =MV x 9% x 68/360 Lapsed 52
Proceeds 200,532 DP 68
List price 350,000
Trade discount - 35,000
Invoice price 315,000
Partial payment - 200,000
Cash discount - 6,300
Payment - November 11 108,700

Precollections 12,500
Rent Revenue - 7,500 =P12,500/5*3
Unearned Rent Revenue 5,000

Office Supplies
1,200,000 1,900,000 Expense, so credit
workback = 375K + 1900K - 1200K 1,075,000
375,000

Cost 16,000
Accumulated Depreciation - 4,375 =(P16,000-P1,000)/6*1.75 = 1.75 is 1y and 9mo/12
Carrying amount 11,625

Cost 100,000
Residual V=value - 20,000
Depreciable amount 80,000
Depreciation rate 0.20 = 1 / life
Depreciation expense 16,000
below 30 600,000 1% 6,000
31-60 250,000 3% 7,500
61-90 80,000 5% 4,000
91-180 60,000 10% 6,000
over 180 10,000 25% 2,500
Allowance for doubtful accounts, end 26,000
Allowance for doubtful accounts, start - 15,000 assume NB
Doubtful accounts expense 11,000

Accounts receivable 1,000,000

Allowance for doubtful accounts - 26,000
Net realizable value 974,000

Net income 90,000

Supplies expense - 2,700
Salaries expense - 1,300
Net income - adjusted 86,000

Sales - on credit 654,600 =P854,600 - P200,000

Sales returns & allowances - on credit - 23,800 =P25,600-P1,800
Net credit sales 630,800
% uncollectible 0.01
Doubtful accounts expense 6,308