VOD VIDEO COMPANY, which uses the periodic inventory system, is a merchandising business that sells photography and
Question:
VOD VIDEO COMPANY, which uses the periodic inventory system, is a merchandising business that sells photography and video-related supplies and equipment Its trial balance as of November 30, 2019, its 11th month of operations, is found in the photo attached
Transactions for December, including adjusting entries information, are as follows:
Date Transaction
Dec 3 Sold merchandise to A for ₱30,000 less 2 on terms 2/10, n/30. Paid freight on merchandise sold, ₱1,000.
5 Issued credit memo to A for receipt of returned merchandise with incorrect specification, ₱4,000
6 Purchased merchandise from Z for ₱40,000 less 2 on terms 50% down, balance 2/10, n/30. Paid freight on merchandise bought, ₱800.
7 Collected 50% of outstanding customer account balance from previous months
8 Received credit memo from Z for allowance granted on merchandise bought, ₱2,000
12 Collected in full the outstanding account of A
16 Paid in full the outstanding account with Z
20 Paid ₱45,000 of November supplier’s account balance due today
31 Paid utility bills for the month, ₱15,000
31Sales salaries for the month totaled ₱50,000 while office salaries totaled ₱25,000. Of the total salaries, ₱10,000 remains unpaid as at year-end.
31The Prepaid Insurance Expense balance represents insurance for 15 months paid at the start of 2019 and effective on that date.
31 The Prepaid Rent Expense balance represents annual rent paid at the start of 2019 and effective on that date.
31 Only 25% of store supplies remain unused as at year-end.
31 One-fourth of Unearned Sales Revenue balance has been earned as at year-end.
31 The company estimates store furniture and equipment to have useful life of 12 years and residual value equal to 10% of cost. This was purchased at the start of the year.
31 It is company policy to maintain 5% of outstanding accounts receivable as doubtful of collection.
31 Based on physical count, ₱68,000 worth of merchandise are in inventory as of this date.
Journal entry:
Prepare the company’s adjusted trial balance as of December 31, 2019.
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood