The trial balance of Pacilio Security Services Inc. as of January 1, 2017, had the following normal balances:
Cash .................$78,972PettyCash................100AccountsReceivable...........33,440Supplies................160PrepaidRent...............3,200MerchandiseInventory(23@$280) ..... 6,440
Land ................... 4,000
Accounts Payable ............. 250
Salaries Payable ............. 1,400
Common Stock .............. 50,000
Retained Earnings ............ 74,662
During 2017 Pacilio Security Services experienced the following transactions:
1. Paid the salaries payable from 2016.
2. Paid $4,800onMarch1,2017,foroneyea{r}^{\prime }sleaseinadvanceonthecompanyvan.3.Paid$8,400 on May 2, 2017, for one year’s office rent in advance.
4. Purchased $550ofsuppliesonaccount.5.Paidcashtopurchase105alarmsystemsatacostof$285 each.
6. Pacilio has noticed its accounts receivable balance is growing more than desired and some collection problems exist. It appears that uncollectible accounts expense is approximately 3 percent of total credit sales. Pacilio has decided it will, starting this year, adopt the allowance method of accounting for uncollectible accounts. It will record an adjusting entry to recognize the estimate at the end of the year.
7. In trying to collect several of its delinquent accounts, Pacilio has learned that these customers have either declared bankruptcy or moved and left no forwarding address. These uncollectible accounts amount to $1,900.8.Sold110alarmsystemsfor$63,800. All sales were on account. (Compute cost of goods sold using the FIFO cost flow method.)
9. Paid the balance of the accounts payable.
10. Pacilio began accepting credit cards for some of its monitoring service sales. The credit card company charges a fee of 4 percent. Total monitoring services for the year were $68,000.Pacilioacceptedcreditcardsfor$24,000 of this amount. The other $44,000wassalesonaccount.11.OnJuly1Accounts\; Receivable\; Accounts\; receivables\; are\; debts\; owed\; to\; your\; company,\; usually\; from\; sales\; on\; credit.\; Accounts\; receivable\; is\; business\; asset,\; the\; sum\; of\; the\; money\; owed\; to\; you\; by\; customers\; who\; haven’t\; paid.The\; standard\; procedure\; in\; business-to-business\; sales\; is\; that...\; Dividend\; A\; dividend\; is\; a\; distribution\; of\; a\; portion\; of\; company’s\; earnings,\; decided\; and\; managed\; by\; the\; company’s\; board\; of\; directors,\; and\; paid\; to\; the\; shareholders.\; Dividends\; are\; given\; on\; the\; shares.\; It\; is\; a\; token\; reward\; paid\; to\; the\; shareholders\; for\; their...$