Prepare the balance sheet for XYZ Merchandising

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Question - XYZ Merchandising uses a periodicThe balance in the inventory account on 12/31/19 is $210,000 inventory system. They report the following accounts and balances on 12/31/19:

 

Debit

Credit

Cash

$129,000

 

Account Receivable

100,000

 

Allowance for Doubtful Accounts

 

1,000

Inventory balance on 1/1/19

192,000

 

Purchases

285,000

 

Equipment

105,000

 

Accumulated Depreciation

 

20,000

Account Payable

 

95,000

Note Payable

 

30,000

Common Stock

 

90,000

Retained Earnings 1/1/19

 

275,000

Sale Revenue

 

390,000

Operating Expenses

90,000

 

Additional Information: The business has not recorded the annual depreciation for 2019 or an estimate for uncollectible accounts in 2019. The note was issued on 7/1/19 and is a short-term note with an 8% annual interest rate (the principal and interest will be paid in 2020). They have not accrued any interest in 2019. The annual depreciation for the equipment is $10,000. They estimate that 2% of the receivables will not be collected.

Required - Prepare the balance sheet for XYZ Merchandising as of 12/31/19?

Reference no: EM132862596

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