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Financial statements annually-uses perpetual inventory

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Reference no: EM13146024

January 1, 2010, Sands Company had Accounts Receivable $55,000 and Allowance for Doubtful Accounts $4,400. Sands Company prepares financial statements annually and uses a perpetual inventory system. During the year the following selected transactions occurred.

  • Jan. 5 Sold $9,000 of merchandise to Norris Company, terms n/30. Cost of the merchandise sold was $4,510.
  • Feb. 2 Accepted a $9,000, 4-month, 9% promissory note from Norris Company for balance due.
  • Feb. 12 Sold $9,120 of merchandise costing $6,490 to Loflin Company and accepted Loflin's $9,120, 2-month, 10% note for the balance due.
  • Feb. 26 Sold $5,890 of merchandise costing $4,950 to Hossfeld Co., terms n/10.
  • Apr. 5 Accepted a $5,890, 3-month, 8% note from Hossfeld Co. for balance due.
  • Apr. 12 Collected Loflin Company note in full.
  • June 2 Collected Norris Company note in full.
  • June 15 Sold $2,610 of merchandise costing $2,000 to Madrid Inc. and accepted a $2,610, 6-month, 12% note for the amount due.

Reference no: EM13146024

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