Transactions List

December $16-31,2022$

Complete each of the following transactions in accordance with the seven$-$step process on pages $11-12$ of the Instructions and Flowcharts book $($step $5).$ Remember the importance of the flowcharts on pages $18-24$ for details as to $($a$)$ documents to prepare, $($b$)$ approvals and other internal control procedures, $($c$)$ accounting entries, and $($d$)$ filing. You are to perform the roles of Ray Kramer, Nancy Ford, and Jim Adams. Flowchart page references are included in the third column of the transactions list where appropriate.

Some of the following events require the preparation or modification of documents and some do not. Although documents accompany most business transactions, you are asked to prepare and work with only a representative sample in this project. Each event on the transactions list includes one of two symbols, which determine whether documents from the document set in this project must be prepared or used:

Yes

You are required to prepare or modify documents from the document set for this event. An accounting entry may or may not be required.

No You are not required to prepare or modify documents from the document set because documents would not normally be prepared or modified for this type of event. An accounting entry is required, with one exception: annual change in employee pay rates.

$-$ Hints are provided in boxed areas like this.

Received legal notification from Benson, Rosenbrook, and Martinson, P$.$C$.,$ attorneys at law, that Stevenson College had filed bankruptcy and will most likely be unable to pay any of its outstanding debts to its suppliers. Write off the account as a bad debt.

$-$ Remember that Waren Sports Supply uses the "Allowance" method rather than "Direct write$-$off" for accounting for bad debts.