80.2K

Verified Solution

Link Copied!

Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $80,000 cash. 2. Purchased $185,000 of merchandise on account. 3. Sold merchandise that cost $150,000 for $298,000 on account. 4. Collected $258,000 cash from accounts receivable. 5. Paid $165,000 on accounts payable. 6. Paid $54,000 of salaries expense for the year. 7. Paid other operating expenses of $70,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $24,000 10,000 2,000 2,000 2,000 Req A Percent Likely to Be Allowance Balance Net realizable value Uncollectible 0.01 Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cas Inc. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? 0.05 0.10 0.20 0.50 Complete this question by entering your answers in the tabs below. Req B Inc Stmt Req B Stmt of Changes Req B Stmt. Cash Flows What is the net realizable value of the accounts receivable at December 31, Year 1? Req B Bal Sheet Req C

Sage Inc. experienced the following transactions for Year 1 , its first year of operations: 1. Issued common stock for $80,000 cash. 2. Purchased $185,000 of merchandise on account. 3. Sold merchandise that cost $150,000 for $298,000 on account. 4. Collected $258,000 cash from accounts receivable. 5. Paid $165,000 on accounts payable. 6. Paid $54,000 of salaries expense for the year. 7. Paid other operating expenses of $70,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of ca Inc. for Year 1. c. What is the net realizable value of the accounts receivable at December 31 , Year 1 ? Complete this question by entering your answers in the tabs below. What is the net realizable value of the accounts receivable at December 31, Year 1

Answer & Explanation Solved by verified expert

See Answer