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Wildhorse French Modern Retailers Ltd. has been in operation for several years. It wholesales furniture to its customers. The company's post-closing trial balance at July 31,2021 , the end of its fiscal year, is presented below: The company had a limited amount of business activity in August 2021 because of holidays for both the company and its major customers. You have been hired on a temporary basis to update the company's records for August. The August transactions and adjustments are presented below: Aug. 1 Paid $20,550 for office expenses and $3,843 for the August rent. 2 Accepted a six-month, 8% note in exchange for Chen Enterprises' overdue account receivable of $93,900. 3 Sale on account to Chavier Ltd, for $499,900. Cost of goods sold, \$271,030. The company uses a perpetual inventory system and estimates that inventory sold for $50.000( cost $27,000) will likely be returned. 8 Determined that an account receivable from Densmore Ltd. of $70,300 is uncollectible. 9. A $303,800 partial payment on account was received from Chavier (see August 3 transaction). 10 Old equipment was sold for $5,650. The equipment's original cost was $34,980; accumulated depreciation to the date of disposal was $27,984. 14 Paid a $10,400 income tax instalment. 21 Purchased a patent for $24,180 cash. The estimated useful life of the patent is five years, the legal life, 20 years. 28 Inventory sold on credit for $60,000 and costing $32,400 was returned by customers. 31 Recorded cash received from sales for the month, $67,900. The cost of goods sold is $34,100. 31 The monthly bank statement revealed the following unrecorded items: interest on bank loan, $1,600, and bank service charges, $1,148. 31 Reviewed outstanding accounts receivable. Determined, through an aging of accounts, that doubtful accounts totalled $321,890 at month end. 31 Recorded depreciation for the month on the remaining equipment that cost $152,400 and is still in use. Useful life of all equipment is estimated to be four years with no residual value. The straight-line method of depreciation is used and depreciation is calculated to the nearest month. 31 Recorded and paid salaries for the month, $90,600. 31 Accrued interest on the Chen Enterprises note receivable (see August 2 transaction). 31 Recorded amortization on the patent (see August 21 transaction). A full month's amortization is recorded on any intangible assets acquired during the month. Record the August transactions and adjustments. (List all debit entries before credit entries, Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, eg. 5,275. Record journal entries in the order presented in the problem.) Aug. 2 Notes Receivable 93,900 Accounts Receivable Aug-3 3 Accounts Recelvable 499,900 Sales (To record sale on account) Aug: 3 Cost of Goods 5old Irventory (To record cost of goods sold) Aug, 8 Aug. 9 Cash 70,300 Accounts Receivable Aug. 10 Cash Accumulated Depreciation-Equipment Loss on Dlsposal Equipment 5,650 303,800 27,984 Augi, 14 Income Tax Expense 10,400 Aug 21 Patents 24.180 Aug. 21 Patents Cash Aug. 28 60,000 Accounts Receivable Inventory 32,400 (To record sale on cash) Avie 31= Aug. 31 1,600 Bank Charges Expense: 1,148 Cash (To record interest expense) Aug. 31 (To record bad debts) Aug. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense) Aug 31 5alaries Expense 90,600 Cash (To record depreciation expense) Aug. 31 > Salaries Expense 90,600 Cash (To record salaries expense) Aug. 31 Interest Receivable Interest Income (To record accrued interest) Aug 31 Amortization Expense Accumulated Amortization - Patents (To record amortization expense)

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