Journal Entry for

a) During December 2017 inventory with a cost of $130,000 was sold on account for $150,000 (assume a perpetual inventory system, not a periodic one). Cash collections for the same period were $165,000.

b)In addition to the above (not included in the $150,000 of sales) was one

sale of inventory with a cost of $20,000 and a selling price of $30,000

where the credit manager predicted only a 10% chance of actually getting

paid but the transaction was carried out anyway - the terms of the sale

required payment in 60 days this amount has not yet been collected and

is not yet overdue as at December 31.