80.2K

Verified Solution

Link Copied!

HEC Company's balance sheet on December 31, 2022, is presented below: During January 2023, the following transactions occurred. HEC uses the perpetal inventory method. Jan. 1 HEC Company sells merchandise on account for $8,500 to Lorans Campany with credit terms of 3/10,n/60. Lorans Company returns $1000 of merchandise that was damaged, along with a check to sertle the account within the discount period. 5HEC wrote off as uncollectible the accounts of Ilamac $830 and GordonCompany $380. 7 HEC sold for $28,000 on account inventory that cost $19,600. 10 HEC sold imventory that cost $900 to Alex Bonn for $1,900. Bonn charged this amount on his Visa Infinite Card. The service fee charged HEC by the Bank is 3% 17 HEC collected $24.900 from customers an accownt. 24 HEC received payment in full from Gordon Company an the accoumt written off on January 5. 27 HEC purchased supplies for \$1,500 cash. 30. HEC Purchased \$12,000 worth of inventory on account. 31 HEC paid other operaning expenses, $3,920. 31 Bad debts Balance are expected to be 10% of the Jamuary 31, 2023, accounts receivable. Instructions: (a) Prepare joumal entries for the transactions listed above (Include entries for cost of goods sold using the perpetual system.) (b) What is the net realizable value of the receivables at the end of the period? (c) Prepare a trial balance at Jamary 31, 2023. (d) Prepare an income statement and a retained earnings statement for the month ending January 31,2023 , and a balance sheet as of January 31, 2023

Answer & Explanation Solved by verified expert

See Answer