Question

Storkville Baby Boutique had the following transactions during the first half of 2011:
January 2 Sold merchandise on account to Tiny Tots Toys, $24,000. The cost of the merchandise sold was $18,000.
February 3 Accepted a 90-day (three month), 10% note for $24,000 from Tiny Tots Toys on account from the January 2 sale
February 4 Sold merchandise on account to Stuffed Animals Unlimited, $22,500.
The cost of the merchandise sold was $17,250.
February 9 Received $10,000 of the amount due from Stuffed Animals Unlimited from the February 4 sale March 22 Accepted a 60-day (two month), 10% note for the remaining balance on Stuffed Animals Unlimited account from the February 4 sale
March 25 Sold merchandise on account to Little Angels Boutique, $22,000. The cost of the merchandise sold was $16,500.
March 31 Storkville began accepting Visa cards on March 1 with deposits submitted monthly. The deposits for the month totaled $44,000. (Cost of merchandise sold was $25,000.) Visa charges a 2% fee.
April 30 Wrote off the Little Angels Boutique account as uncollectible after receiving news that the company declared bankruptcy. Storkville Baby Boutique uses the allowance method for accounting for uncollectible accounts.
April 30 April’s Visa card sales totaled $52,000. Cost of goods sold was $27,000.
May 4 Received payments in full from Tiny Tots Toys
May 21 Received payment in full from Stuffed Animals Unlimited
May 31 May’s Visa card sales totaled $65,000. Cost of goods sold was $34,000.
June 5 Sold merchandise on account to Tiny Tots Toys, $22,000. The cost of the merchandise was $16,850.
June 10 Sold merchandise on account to Stuffed Animals Unlimited, $35,000. The cost of the merchandise sold was $29,000.
June 15 Collected the amount due from Tiny Tots Toys for the June 5 sale
June 22 Collected the amount due from Stuffed Animals Unlimited for the June 10 sale
June 30 June’s Visa card sales totaled $28,000. Cost of goods sold was $18,000.
June 30 Storkville Baby Boutique has $156,000 in accounts receivable and an allowance account with a negative balance of $700. That is, the firm wrote off more than its estimate. The net credit sales for the first six months of the year were $650,000, and cash sales were $115,000.
Assume that Storkville Baby Boutique uses the credit sales method of accounting for uncollectible accounts. The firm’s historical data indicates that approximately 2.5% of net credit sales are uncollectible.

Requirement
Use the accounting equation to record the preceding transactions. Round to the nearest dollar.



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  • CreatedSeptember 01, 2014
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