Frankel Inc. experienced the following transactions for 2013, its first year of operations:
1. Issued common stock for $60,000 cash.
2. Purchased $210,000 of merchandise on account.
3. Sold merchandise that cost $165,000 for $310,000 on account.
4. Collected $288,000 cash from accounts receivable.
5. Paid $190,000 on accounts payable.
6. Paid $46,000 of salaries expense for the year.
7. Paid other operating expenses of $62,000.
8. Frankel adjusted the accounts using the following information from an accounts receivable aging schedule.

Required
a. Record the above transactions in general journal form and post them to T-accounts.
b. Prepare the income statement, statement of changes in stockholders€™ equity, balance sheet, and statement of cash flows for Frankel Inc. for 2013.
c. What is the net realizable value of the accounts receivable at December 31,2013?

Transcribed Image Text:

Number of Days Percent Likely to Be Uncollectible Allowance Balance Past Due Amount Current 0-30 31-60 61-90 Over 90 days S15,700 8,500 4,000 2,600 1,200 01 05 10 20 50