The following list of accounts is taken from the records of Western Sales Ltd. at December...

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The following list of accounts is taken from the records of Western Sales Ltd. at December 31, 2023: Account Accounts payable Accounts receivable Accumulated depreciation, PPE Admin. salaries and benefits expense Advertising expense Allowance for doubtful accounts Bad debts expense Cash Commissions and benefits expense Common shares Cost of goods sold Corporate tax liabilities Depreciation expense Dividends, common shares Dividends, preferred shares Gain on disposal of PPE Income taxes expense Interest expense Inventory Operating bank loan. Non-current bank loan. Preferred shares, non-cumulative Prepaid insurance Property, plant, and equipment Occupancy expense Retained earnings, opening Sales Warranty provision Warranty expense $18,000 353,000 281,000 134,000 900 200 14,120 12,400 80,000 58,600 693,000 6,200 96,900 100 600 10,800 11,704 20,800 235,000 204,000 692,000 8,600 2,000 1,463,572 67,000 750,056 1,178,000 1,200 23,560 Required: 1. (...) Using the format below, prepare a note to the financial statements listing applicable 2023 expenses in nature of expense format. Show how you have grouped the expenses to agree to the amounts shown on the income statement as cost of goods sold, selling and marketing expenses, and administrative expenses (see requirement 2). Assume the following amounts: (increase) decrease in inventory of goods Merchandise purchases ($111,250) 804,250 NOTE X: EXPENSES CLASSIFIED BY NATURE Operating expenses organized by nature of expense are as follows: Type of expense Represented by: Cost of goods sold Selling and marketing Administrative The following list of accounts is taken from the records of Western Sales Ltd. at December 31, 2023: Account Accounts payable Accounts receivable Accumulated depreciation, PPE Admin. salaries and benefits expense Advertising expense Allowance for doubtful accounts Bad debts expense Cash Commissions and benefits expense Common shares Cost of goods sold Corporate tax liabilities Depreciation expense Dividends, common shares Dividends, preferred shares Gain on disposal of PPE Income taxes expense Interest expense Inventory Operating bank loan. Non-current bank loan. Preferred shares, non-cumulative Prepaid insurance Property, plant, and equipment Occupancy expense Retained earnings, opening Sales Warranty provision Warranty expense $18,000 353,000 281,000 134,000 900 200 14,120 12,400 80,000 58,600 693,000 6,200 96,900 100 600 10,800 11,704 20,800 235,000 204,000 692,000 8,600 2,000 1,463,572 67,000 750,056 1,178,000 1,200 23,560 Required: 1. (...) Using the format below, prepare a note to the financial statements listing applicable 2023 expenses in nature of expense format. Show how you have grouped the expenses to agree to the amounts shown on the income statement as cost of goods sold, selling and marketing expenses, and administrative expenses (see requirement 2). Assume the following amounts: (increase) decrease in inventory of goods Merchandise purchases ($111,250) 804,250 NOTE X: EXPENSES CLASSIFIED BY NATURE Operating expenses organized by nature of expense are as follows: Type of expense Represented by: Cost of goods sold Selling and marketing Administrative

Answer rating: 100% (QA)

1 Determine cost of goods sold Increase decrease in inventory of goods 111250 Merchandise purchases ... View the full answer