During the month, the following transactions occurred for Trevor’s Supply Company. The company uses the perpetual inventory method. Dec....

3.7 Ratings (687 Votes)

(a.) Journal Entries

Date	Account Title and Explanation	Debit $	Credit $
Dec.1	Notes receivable	12,400
	Accounts receivable		12,400
	(Note received for accounts receivable)
Dec.3	Allowance for doubtful account	680
	Accounts receivable		680
	(Write off of uncollectible)
Dec.8	Merchandise inventory	17,200
	Accounts payable		17,200
	(Purchase of inventory on account)
Dec.11	Accounts receivable	25,000
	Sales revenue		25,000
	(Sales on account)
	Cost of goods sold	17,500
	Merchandise inventory		17,500
	(Cost of goods sold)
Dec.12	Salaries expense	13,750
	Cash		13,750
	(Salaries paid)
Dec.15	Sales return	8,000
	Accounts receivable		8,000
	(Sales return on account)
Dec.17	Cash	17,000
	Accounts receivable		17,000
	(Collections from customers)
Dec.18	Accounts payable	17,200
	Cash		17,200
	(Paid for accounts payable)
Dec.24	Accounts receivable	370
	Allowance for doubtful account		370
	(To reinstate previosuly writen off account)
	Cash	370
	Accounts receivable		370
	(Collections from customers)
Dec.27	Supplies	1,300
	Accounts receivable		1,300
	(Purchased supplies on account)
Dec.31	Freight expense	3,218
	Cash		3,218
	(Freight paid)

Hey mate, plz share the opening balances to get the further parts answered.

Thanks.

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Other questions asked by students

Dec. 1	Accepted a 4-month, 6% note from a customer in settlement of$12,400 account.
3	Wrote off as uncollectible specific accounts totaling $680.
8	Purchased $17,200 of inventory on account, terms 2/10, n/30.
11	Sold $25,000 of inventory that cost $17,500, terms 1/15,n/45.
12	Paid $13,750 for employee salaries.
15	Customers returned $8,000 of inventory sold on December11^th that cost $5,200.

17	Collected the balance due from the December 11^thsale.

18	Paid the balance due on the December 8^thpurchase.
24	Received $370 on an account previously written off.
27	Purchased advertising supplies for $1,300 on account.
31	Paid freight on inventory sold, $3,218.

1.	Interest accrual for the note.

2.	Bad debts are expected to be 20% of the ending accountsreceivable.

3.	A count of advertising supplies at month end, reveals that $560remains unused.

4.	The income tax rate is 30% based on $9,645 taxableincome.