COMP EXAMPLE2

COMP EXAMPLE2 - # Cash Accounts receivable, net of $5,000...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
## Cash 100,000 55,000 Inventory 125,000 11,500 Fixed assets 675,000 Accumulated depreciation (225,000) Accounts payable 50,000 Debt 200,000 Retained earnings 391,500 Common stock 100,000 Accounts receivable, net of $5,000 allowance for doubtful accounts Marketable securities, at fair value, cost of $10,000 The following applies to the month ended January 31, 2005 (XYZ uses perpetual inventory accounting): 1. Combined inventory purchases for the month of $500,000, on credit, terms 2/10 net 30, XYZ uses the net method 2. Sell goods to customers for $1,200,000 (no discounts offered). Perpetual inventory system indicates that the cost of the goods sold was $800,000. 3. Combined collections from customers of $1,100,000 of accounts receivable during January. 4. Paid cash of $400,000 against open invoices; some of the invoices were paid after the discount period, resulting in $5,000 of discounts lost. 5. Compensation to employees who work directly on manufacturing was paid in the amount of 10,000. Management and the administrative staff were paid $25,000. 6. Management uses 2.0% of sales to provide the accounts receivable allowance. 7.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/06/2008 for the course ECON 136A taught by Professor Anderson during the Winter '08 term at UCSB.

Page1 / 3

COMP EXAMPLE2 - # Cash Accounts receivable, net of $5,000...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online