Question

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

Mar. 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 March 11th that cost $5,200.

17 Collected the balance due from the March 11th sale.

18 Paid the balance due on the March 8 th purchase.

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.

(a) Journalize the March transactions using the accounts listed in part b. Round all amounts to the nearest dollar.

(b) Post to the T accounts. Beginning balances are already shown.

(c) Journalize the following adjustments:

1. Interest accrual for the note.

2. Bad debts are expected to be 20% of the year end accounts receivable.

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

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

(d) Post adjusting entries to the T accounts.

(e) Prepare a trial balance.

(f) Prepare the financial statements for the quarter ending March 31.

we weren't given a opening trial balance but the teacher did tell us the trial balance total: 784,671

the totals for accounts:

cash:41,076

operating expense:189,962

total assets:164,486

Answer 1

Posted journal entries, however since beginning balances not given, rest of question cant be answered

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Part a
Date	Account	Debit	Credit
Mar 1	Note Receivable	$ 12,400
	Accounts Receivable		$ 12,400
Mar 3	Allowance for doubt accounts	$       680
	Accounts Receivable		$       680
Mar 8	Inventory	$ 17,200
	Accounts Payable		$ 17,200
Mar 11	Accounts Receivable	$ 25,000
	Sales Revenue		$ 25,000
Mar 11	Cost of goods sold	$ 17,500
	Inventory		$ 17,500
Mar 12	Salaries Expense	$ 13,750
	Cash		$ 13,750
Mar 15	Sales Return and Allowance	$    8,000
	Accounts Receivable		$    8,000
Mar 15	Inventory	$    5,200
	Cost of goods sold		$    5,200
Mar 17	Cash	$ 15,300
	Sales Discount	$    1,700
	Accounts Receivable		$ 17,000
Mar 18	Accounts Payable	$ 17,200
	Inventory		$       344
	Cash		$ 16,856
Mar 24	Accounts Receivable	$       370
	Allowance for doubt accounts		$       370
Mar 24	Cash	$       370
	Accounts Receivable		$       370
Mar 27	Supplies	$    1,300
	Cash		$    1,300
Mar 31	Freight Out	$    3,218
	Cash		$    3,218