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Inventory Sales Accounts Receivable Purchases

1. The document contains accounting information and adjustments for various accounts including inventory, sales, accounts receivable, purchases, accounts payable, aging of accounts receivable, bad debt expense, allowance for bad debts, accrued interest income, interest expense, and notes receivable. 2. It provides unadjusted and adjusted balances for key accounts, details adjustments made through journal entries, and calculates required balances and amounts for allowance for bad debts, accrued interest income, and interest expense. 3. The information is presented in a structured format with line items, dollar amounts, and percentages to reconcile account balances and derive required ending balances.

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Philip Castro
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42 views

Inventory Sales Accounts Receivable Purchases

1. The document contains accounting information and adjustments for various accounts including inventory, sales, accounts receivable, purchases, accounts payable, aging of accounts receivable, bad debt expense, allowance for bad debts, accrued interest income, interest expense, and notes receivable. 2. It provides unadjusted and adjusted balances for key accounts, details adjustments made through journal entries, and calculates required balances and amounts for allowance for bad debts, accrued interest income, and interest expense. 3. The information is presented in a structured format with line items, dollar amounts, and percentages to reconcile account balances and derive required ending balances.

Uploaded by

Philip Castro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Inventory Sales Accounts Receivable Purchases

Unadjusted 567,890 1,411,100 1,113,500 792,500


1 14,500
2 (15,000)
3 (10,000)
4 14,000
5 55,000 55,000
6 5,700
7 (5,700)
8 (90,000)
9
10 50,000
11 15,000
12 500
Adjusted Balances 551,690 1,451,100 1,168,500 802,700
Accounts Payable
456,720
14,500

(10,000)

461,220
Control Account <1 month 1 to 6 months Over 6 months
Unadjusted Balance 1,419,100 531,100 568,000 352,000
1 8,000
2 - (14,000)
3 18,000
4 (48,000) (48,000)
5 (8,000)
6 90,280 90,280
7 63,200 63,200
8 34,800 34,800
9 70,360 70,360
10 41,840 24,000 17,840
11 61,200 61,200
Total 1,750,780 594,300 799,840 356,640

Aging of Receivables Amount Percentage Bad Debts Expense


Less than 1 Month 594,300 1% 5,943.0
1 to 6 Months 799,840 2% 15,996.8
Over 6 Months 124,000 50% 62,000.0
180,000 90% 162,000.0
Required Allowance for Bad Debts 245,940

Allowance for Bad Debts Beginning 150,900


Add: Additional Provisions (Squeezed) 193,040
Deduct: Writeoffs per Statement (50,000)
Deduct: Writeoffs per Aging (48,000)
Required Allowance 245,940

Accounts Receivable, end 1,750,780


Less: Allowance for Doubtful Accounts (245,940)
Accounts Receivable, net 1,504,840
Accrued Interest Income
Hazel 90000 x 15% x 2/12 2,250
Rosa 15000 x 12% x 1/12 150
Rona 36000 x 15% x 1/12 450
Anito 18000 x 18% x 1/12 270
Total Accrued Income 3,120

Interest Expense
Samson 311
Salazar 11250 x 2/12 1,875
Total Interest Expense 2,186

Notes Receivable
Hazel 90,000
Rosa 15,000
Rona 36,000
Total Notes Receivable 141,000

Notes Receivable - discounted


Salazar 75,000

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