31
During October, the firm had net credit sales of $10,140. From experience with similar
businesses, the previous accountant had estimated that 1.0 percent of the firm's net
credit sales would result in uncollectible accounts. Record an adjustment for the
expected loss from uncollectible accounts for the month of October.
31
On October 31, an inventory of the supplies showed that items costing $2,740 were on
hand. Record an adjustment for the supplies used in October.
31
On September 30, 20X1, the firm purchased a six-month insurance policy for $8,400.
Record an adjustment for the expired insurance for October.
31
On October 1, 20X1, the firm signed a three-month advertising contract for $5,100 with a
local cable television station and paid the full amount in advance. Record an adjustment
for the expired advertising for October.
31
On April 1, 20X1, the firm purchased equipment for $83,000. The equipment was
estimated to have a useful life of five years and a salvage value of $12,500. Record an
adjustment for depreciation on the equipment for October.
31
Based on a physical count, ending merchandise inventory was determined to be $82,260.
