Journal entry worksheet acid-test ratio. Use + tor increase, - tor decrease, and (NE) for no efrect. 1. Credit sales for the year amounted to $240,000. The cost of goods sold was $156,000. 2. Collected accounts recelvable, $252,000. 3. Purchased imventory on account, $168,000. 4. Issued 500 shares of common stock for $18 per share. 5. Wrote off $7,000 of uncollectible accounts using the allowance for bad debts. 6. Declared and paid a cash dividend, $20,000. 7. Sold marketable securities costing $26,000 for $31,000 in cash. 8. Recorded insurance expense for the year, $12,000. The premium for the policy was paid in June 2022. 9. Borrowed cash on a short-term bank loan, $10,000. 10. Repaid principal of $40,000 and interest of $3,000 on a long-term bank loan. Complete this question by entering your answers in the tabs below. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2022. Note: Round "Ratio" answers to 2 decimal places. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2023, Prepare journal entries for the below transactions. Note: If no entry is required for a transaction/event, select "No joumal entry required" in the first account field. 1. Credit sales for the year amounted to $240,000. The cost of goods sold was $156,000. 2. Collected accounts receivable, $252,000. 3. Purchased inventory on account, $168,000. 4. Issued 500 shares of common stock for $18 per share. 5 . Wrote off $7,000 of uncollectible accounts using the allowance for bad debts. 6. Declared and paid a cash dividend, $20,000. 7. Sold marketable securities costing $26,000 for $31,000 in cash. 8. Recorded insurance expense for the year, $12,000. The premium for the policy was paid in June 2022. 9. Borrowed cash on a short-term bank loan, $10,000. 10. Repaid principal of $40,000 and interest of $3,000 on a long-term bank loan. Required: a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2022. b. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2023. Prepare journal entries for the below transactions and indicate the effect of each item on Tibbetts Company's working capital, current ratio, and acid-test ratio. Use + for increase, - for decrease, and (NE) for no effect. 1. Credit sales for the year amounted to $240,000. The cost of goods sold was $156,000. 2. Collected accounts receivable, $252,000. 3. Purchased inventory on account, $168,000. 4. Issued 500 shares of common stock for $18 per share. 5. Wrote off $7,000 of uncollectible accounts using the allowance for bad debts. 6. Declared and paid a cash dividend, $20,000. 7. Sold marketable securities costing $26,000 for $31,000 in cash. 8. Recorded insurance expense for the year, $12,000. The premium for the policy was paid in June 2022. 9. Borrowed cash on a short-term bank loan, $10,000. 10. Repaid principal of $40,000 and interest of $3,000 on a long-term bank loan. 11 P 11-16 i View transaction list B The cost of goods sold was $156,000. C Collected accounts receivable, $252,000 D Purchased inventory on account, $168,000. Herences E Issued 500 shares of common stock for $18 per share. F Wrote off $7,000 of uncollectible accounts using the allowance for bad debts. G Declared and paid a cash dividend, $20,000. H Sold marketable securities costing $26,000 for $31,000 in cash. Note : = journal entry has been entered Record entry Clear entry View general journal Required A Required B2