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Sunland Corporation's balance sheet at December 31, 2024, is presented below. Accounts receivable Allowance for doubtful accounts Inventory Jan. 1 1 2 8 3. During January 2025, the following transactions occurred. Sunland u 11 15 17 21 27 Adjustment data: Sunland Corporation Balance Sheet December 31, 2024 31 $13,010 20,600 (850) 9,760 $42.520 Accounts payable Common stock Retained earnings $8,310 18,500 15,710 $42.520 Sunland accepted a 4-month, 836 nota from Bethany Company in payment of Bethany's $1,200 account. Sunland wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300) Sunland purchased $15,700 of inventory on account. Sunland sold for $23,400 on account inventory that cost $16,110. Sunland sold inventory that cost $750 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Sunland by First Bankis 216 Sunland collected $24,700 from customers on account. Sunland paid $15,620 on accounts payable Sunland received payment in full ($300) from Drake Company on the account written off on January 3 Sunland purchased advertising supplies for $1,420 cash. Sunland paid other operating expenses, $3,390. You may want to set up T-accounts to determine ending balances) orpetual inventory system. Interest is recorded for the month on the note from January 1. Uncollectibles are expected to be 696 of the January 31, 2025, accounts receivable A count of advertising supplies on January 31, 2025, reveals that $530 remains unused. The income tax rate is 30%. (Hint Prepare the income statement up to Income Before Taxes and multiply by 30% to compute the amount, round to whole dollars.]

Sunland Corporation's balance sheet at December 31, 2024, is presented below. Accounts receivable Allowance for doubtful accounts Inventory Jan. 1 1 2 8 3. During January 2025, the following transactions occurred. Sunland u 11 15 17 21 27 Adjustment data: Sunland Corporation Balance Sheet December 31, 2024 31 $13,010 20,600 (850) 9,760 $42.520 Accounts payable Common stock Retained earnings $8,310 18,500 15,710 $42.520 Sunland accepted a 4-month, 836 nota from Bethany Company in payment of Bethany's $1,200 account. Sunland wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300) Sunland purchased $15,700 of inventory on account. Sunland sold for $23,400 on account inventory that cost $16,110. Sunland sold inventory that cost $750 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Sunland by First Bankis 216 Sunland collected $24,700 from customers on account. Sunland paid $15,620 on accounts payable Sunland received payment in full ($300) from Drake Company on the account written off on January 3 Sunland purchased advertising supplies for $1,420 cash. Sunland paid other operating expenses, $3,390. You may want to set up T-accounts to determine ending balances) orpetual inventory system. Interest is recorded for the month on the note from January 1. Uncollectibles are expected to be 696 of the January 31, 2025, accounts receivable A count of advertising supplies on January 31, 2025, reveals that $530 remains unused. The income tax rate is 30%. (Hint Prepare the income statement up to Income Before Taxes and multiply by 30% to compute the amount, round to whole dollars.]

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 5MC: Tines Commerce computes bad debt based on the allowance method. They determine their current years...
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Please be sure to provide detailed explanations and show work. The answers in RED are incorrect.

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Prepare adjusting journal entries for the transactions only HIGHLIGHTED in RED.

Jan 31 Jan 31 Jan 31 V Bad Debt Expens Allowance for Doubtful Accounts (To record bad debt expense) Supplies Expense Supple (To record supplies used.) Income Tax Expense Income Taxes Payable (To record income tax expense.) 00 10 00 00 00 00 757 890 835
Transcribed Image Text:Jan 31 Jan 31 Jan 31 V Bad Debt Expens Allowance for Doubtful Accounts (To record bad debt expense) Supplies Expense Supple (To record supplies used.) Income Tax Expense Income Taxes Payable (To record income tax expense.) 00 10 00 00 00 00 757 890 835
Sunland Corporation's balance sheet at December 31, 2024, is presented below. Cash Accounts receivable Allowance for doubtful accounts Inventory Jan. 1 3 1. 2. 3. 11 15 During January 2025, the following transactions occurred. Sunland uses the perpetual inventory system. 21 Sunland Corporation Balance Sheet December 31, 2024 282 Adjustment data: 27 $13,010 20,600 (850) 9,760 $42,520 Sunland accepted a 4-month, 8% note from Bethany Company in payment of Bethany's $1,200 account. Sunland wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). Sunland purchased $15,700 of inventory on account. Sunland sold for $23,400 on account inventory that cost $16,110. Sunland sold inventory that cost $750 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Sunland by First Bank is 396. 17 Sunland collected $24,700 from customers on account. Sunland paid $15,620 on accounts payable. 24 Sunland received payment in full ($300) from Drake Company on the account written off on January 3. Sunland purchased advertising supplies for $1,420 cash. Accounts payable Common stock Retained earnings 31 Sunland paid other operating expenses, $3,390. $8,310 18,500 15,710 [You may want to set up T-accounts to determine ending balances.) $42,520 Interest is recorded for the month on the note from January 1. Uncollectibles are expected to be 696 of the January 31, 2025, accounts receivable. A count of advertising supplies on January 31, 2025, reveals that $530 remains unused. The income tax rate is 30%. (Hint: Prepare the income statement up to Income Before Taxes and multiply by 30% to compute the amount, round to whole dollars.)
Transcribed Image Text:Sunland Corporation's balance sheet at December 31, 2024, is presented below. Cash Accounts receivable Allowance for doubtful accounts Inventory Jan. 1 3 1. 2. 3. 11 15 During January 2025, the following transactions occurred. Sunland uses the perpetual inventory system. 21 Sunland Corporation Balance Sheet December 31, 2024 282 Adjustment data: 27 $13,010 20,600 (850) 9,760 $42,520 Sunland accepted a 4-month, 8% note from Bethany Company in payment of Bethany's $1,200 account. Sunland wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). Sunland purchased $15,700 of inventory on account. Sunland sold for $23,400 on account inventory that cost $16,110. Sunland sold inventory that cost $750 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Sunland by First Bank is 396. 17 Sunland collected $24,700 from customers on account. Sunland paid $15,620 on accounts payable. 24 Sunland received payment in full ($300) from Drake Company on the account written off on January 3. Sunland purchased advertising supplies for $1,420 cash. Accounts payable Common stock Retained earnings 31 Sunland paid other operating expenses, $3,390. $8,310 18,500 15,710 [You may want to set up T-accounts to determine ending balances.) $42,520 Interest is recorded for the month on the note from January 1. Uncollectibles are expected to be 696 of the January 31, 2025, accounts receivable. A count of advertising supplies on January 31, 2025, reveals that $530 remains unused. The income tax rate is 30%. (Hint: Prepare the income statement up to Income Before Taxes and multiply by 30% to compute the amount, round to whole dollars.)
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