David?s Entertainment is a merchandising business. Their account balances as of November 30, 2012 (unless otherwise indicated), are as follows;110 Cash $ 73,920;112 Accounts Receivable 34,250;113 Allowance for Doubtful Accounts 11,000;115 Merchandise Inventory 123,900;116 Prepaid Insurance 3,750;117 Store Supplies 2,850;123 Store Equipment 100,800;124 Accumulated Depreciation-Store Equipment 20,160;210 Accounts Payable 21,450;211 Salaries Payable 0;218 Interest Payable 0;220 Note Payable (Due 2017) 15,000;310 D. Williams, Capital (January 1, 2012) 73,260;311 D. Williams, Drawing 50,000;312 Income Summary 0;410 Sales 853,445;411 Sales Returns and Allowances 20,020;412 Sales Discounts 13,200;510 Cost of Merchandise Sold 414,575;520 Sales Salaries Expense 74,400;521 Advertising Expense 18,000;522 Depreciation Expense 0;523 Store Supplies Expense 0;529 Miscellaneous Selling Expense 2,800;530 Office Salaries Expense 40,500;531 Rent Expense 18,600;532 Insurance Expense 0;533 Bad Debt Expense 0;539 Miscellaneous Administrative Expense 1,650;550 Interest Expense 1,100;David?s Entertainment uses the perpetual inventory system and the First-in, First-out costing method. Transportation-in and purchase discounts should be added to the Inventory Control Sheet, but since this will complicate the computation of the First-in, First-out costing method, please ignore this step in the process. They also use the Allowance Method for bad debt.;The Accounts Receivable and Accounts Payable Subsidiary Ledgers along with the Inventory Control Sheet should be updated as each transaction affects them (daily).;David?s Entertainment sells four types of television entertainment units.;The sale prices of each are;TV A: $3,500;TV B: $5,250;TV C: $6,125;PS D: $9,000;During December, the last month of the accounting year, the following transactions were completed;Dec. 1. Issued check number 2632 for the December rent, $2,600.;3. Purchased three TV C units on account from Prince Co., terms 2/10, n/30, FOB shipping point, $11,100.;4. Issued check number 2633 to pay the transportation changes on purchase of December 3, $400. (NOTE: Do not include shipping and purchase discounts to the Inventory Control sheet for this project.);6. Sold four TV A and four TV B on account to Albert Co., invoice 891, terms 2/10, n/30, FOB shipping point.;10. Sold two projector systems for cash.;11. Purchased store supplies on account from Matt Co., terms n/30, $580.;13. Issued check to Prince Co. number 2634 for the full amount due, less discount allowed.;14. Issued credit memo for one TV A unit returned on sale of December 6.;15. Issued check number 2635 for advertising expense for last half of December, $1,500.;16. Received cash from Albert Co. for the full amount due (less return of December 14 and discount).;19. Issued check number 2636 to buy two TV C units, $7,600.;19. Issued check number 2637 for $6,100 to Joseph Co. on account.;20. Sold five TV C units on account to Cameron Co., invoice number;892, terms 1/10, n/30, FOB shipping point.;20. For the convenience of the customer, issued check number 2638 for shipping charges on sale of December 20, $700.;21. Received $12,250 cash from McKenzie Co. on account, no discount.;21. Purchased three projector systems on account from Elisha Co., terms 1/10, n/30, FOB destination, $15,600.;24. Received notification that Marie Co. has been granted bankruptcy with no;amount of recovery. We are to write-off her amount due. (Note: See page;402 for entry required.);25. Issued a debit memo for return of $5,200 because of a damaged projection;system purchased on December 21, receiving credit from the seller.;26. Issued check number 2639 for refund of cash on sales made for cash, $600. (Customer was going to return goods until an allowance was arranged.);27. Issued check number 2640 for sales salaries of $1,750 and office;salaries of $950.;28. Purchased store equipment on account from Matt Co., terms n/30, FOB;destination, $1,200.;29. Issued check number 2641 for store supplies, $470.;30. Sold four TV C units on account to Randall Co., invoice number 893;terms 2/10, n/30, FOB shipping point.
Paper#74005 | Written in 18-Jul-2015Price : $22