I need help finding out what I am missing in the income statement Accounts Recei
ID: 2529538 • Letter: I
Question
I need help finding out what I am missing in the income statement
Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) $20,570 Unearned Revenue (40 units) $ 11,600 Accounts Payable (Jan Rent) $ (1,550) Notes Payable $ 4,050 Contributed Capital $5,000 $2,600 $16,500 $6,300 4,270 Retained Earnings-Feb 1, 2012 . WWC establishes a policy that it will sell inventory at $150 per unit. . In January, WWC received a $5,000 advance for 40 units, as reflected in Unearned Revenue WWC's February 1 inventory balance consisted of 45 units at a total cost of $4,050. . wwC's note payable accrues interest at a 12% annual rate. wwcwluse hOrmethd adn perpetual baisExplanation / Answer
Date
Explanations
Debit
Credit
1-Feb
Notes Receivables
1900
Accounts Receivable
1900
Amount due from kitkat converted to notes
2-Feb
Insurance expense
700
Cash
700
insurance expense paid
5-Feb
Inventory
12750
Accounts Payable
12750
Inventory purchased on account
Per unit cost
= 12750 / 170
= $ 75
5-Feb
Freight In
340
Cash
340
freight paid on inventory purchased
10-Feb
Accounts receivable
21000
Sales
21000
Inventory sold on account
10-Feb
Cost of Goods Sold
11175
Inventory
11175
Cost of Goods Sold is calculated as
opening stock = 45 units , 4050
Purchased 95 units , 7125
15-Feb
Unearned revenue
5000
Accounts Receivable
1000
Inventory Sold
5000
15-Feb
Cost of Goods Sold
3000
Inventory
3000
Cost of Goods Sold is calculated as
Purchased units
40 Units , $ 3000
15-Feb
Sales Return and allowances
2250
Accounts Receivable
2250
Goods returned by customer
15-Feb
Inventory
1125
Cost of goods Sold
1125
cost of goods sold reversed
16-Feb
Wages Expense
2100
Cash
2100
wages Expense paid
17-Feb
Accounts Payable
12750
Purchase Discounts
255
Cash
12495
Amount paid to supplier for old purchases
18-Feb
Allowance for doubtful accounts
1650
Accounts receivable
1650
Amount written off
19-Feb
Rent Expense
2600
Accounts Payable
2600
Cash
5200
19-Feb
Cash
9160
Sales Discount
140
Accounts Receivable
9300
Amount received from customers
26-Feb
Accounts Receivable
530
Allowance for doubtful accounts
530
Allowance for doubtful accounts reversed
26-Feb
Cash
530
Accounts receivable
530
Amount received from debt previously written off
27-Feb
Utility expense
600
Accounts Payable
600
Utility expenses due
28-Feb
Dividends
750
Cash
750
Dividends paid in cash
29-Feb
Wages expense
2100
Wages Payable
2100
amount due to employees
29-Feb
Bad Debt expense
1050
Allowance for doubtful accounts
1050
Allowance created
Accounts Receivable - beginning
11600
Fresh Due during period
22000
( 21000 + 1000)
Converted to Notes Payable
-1900
Returns
-2250
Net written off ( 1650 -530)
-1120
Amounts Received ( 9300+530)
-9830
Due at end
18500
Allowance created 8 %
1480
Balance in Allowance account
430
( 1550 - 1650 + 530)
Provision created ( 1480 - 430)
1050
29-Feb
Interest Expense
165
Interest Payable
165
Interest Expense due
29-Feb
Accrued Interest
19
Interest Revenue
19
Accrued Interest due
Date
Explanations
Debit
Credit
1-Feb
Notes Receivables
1900
Accounts Receivable
1900
Amount due from kitkat converted to notes
2-Feb
Insurance expense
700
Cash
700
insurance expense paid
5-Feb
Inventory
12750
Accounts Payable
12750
Inventory purchased on account
Per unit cost
= 12750 / 170
= $ 75
5-Feb
Freight In
340
Cash
340
freight paid on inventory purchased
10-Feb
Accounts receivable
21000
Sales
21000
Inventory sold on account
10-Feb
Cost of Goods Sold
11175
Inventory
11175
Cost of Goods Sold is calculated as
opening stock = 45 units , 4050
Purchased 95 units , 7125
15-Feb
Unearned revenue
5000
Accounts Receivable
1000
Inventory Sold
5000
15-Feb
Cost of Goods Sold
3000
Inventory
3000
Cost of Goods Sold is calculated as
Purchased units
40 Units , $ 3000
15-Feb
Sales Return and allowances
2250
Accounts Receivable
2250
Goods returned by customer
15-Feb
Inventory
1125
Cost of goods Sold
1125
cost of goods sold reversed
16-Feb
Wages Expense
2100
Cash
2100
wages Expense paid
17-Feb
Accounts Payable
12750
Purchase Discounts
255
Cash
12495
Amount paid to supplier for old purchases
18-Feb
Allowance for doubtful accounts
1650
Accounts receivable
1650
Amount written off
19-Feb
Rent Expense
2600
Accounts Payable
2600
Cash
5200
19-Feb
Cash
9160
Sales Discount
140
Accounts Receivable
9300
Amount received from customers
26-Feb
Accounts Receivable
530
Allowance for doubtful accounts
530
Allowance for doubtful accounts reversed
26-Feb
Cash
530
Accounts receivable
530
Amount received from debt previously written off
27-Feb
Utility expense
600
Accounts Payable
600
Utility expenses due
28-Feb
Dividends
750
Cash
750
Dividends paid in cash
29-Feb
Wages expense
2100
Wages Payable
2100
amount due to employees
29-Feb
Bad Debt expense
1050
Allowance for doubtful accounts
1050
Allowance created
Accounts Receivable - beginning
11600
Fresh Due during period
22000
( 21000 + 1000)
Converted to Notes Payable
-1900
Returns
-2250
Net written off ( 1650 -530)
-1120
Amounts Received ( 9300+530)
-9830
Due at end
18500
Allowance created 8 %
1480
Balance in Allowance account
430
( 1550 - 1650 + 530)
Provision created ( 1480 - 430)
1050
29-Feb
Interest Expense
165
Interest Payable
165
Interest Expense due
29-Feb
Accrued Interest
19
Interest Revenue
19
Accrued Interest due
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