Journal Entry Worksheet
1. Purchase 1,200 units for $126,000 on account ($105 each).
2. Purchase 1,300 units for $143,000 on account ($110 each).
3. Purchase 1,400 units for $161,000 on account ($115 each).
4. Return 100 of the units purchased on January 12 because of defects.
5. Sell 4,000 units on account for $600,000.
6. The cost of the units sold is determined using a FIFO perpetual inventory system.
7. Receive $580,000 from customers on accounts receivable.
8. Pay $410,000 to inventory suppliers on accounts payable.
9. Write off accounts receivable as uncollectible, $2,500.
10. Pay cash for salaries during January, $128,000.
11. Record the adjustment of inventory for market below cost. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
12. Record the adjustment needed for the allowance for uncollectible accounts at the end of January. At the end of January, $4,000 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected.
13. Record the adjustment for interest expense. Accrued interest expense on notes payable for January.
14. Record the adjustment for income expense. Accrued income taxes at the end of January are $12,300.
15. Record the entry to close the revenue accounts.
16. Record the entry to close the expense accounts.
