All accounts receivable and accounts payable relate to trade merchandise. Accounts payable are recorded net and always paid to take all of the discounts allowed. The allowance for doubtful accounts at the end of 2022 was the same as at the end of 2021. No receivables were charged against the allowance during 2022. The proceeds from the note payable were used to finance a new store building. Share capital was sold to provide additional working capital.

All accounts receivable and accounts payable relate to trade merchandise. Accounts payable are recorded net and always paid to take all of the discounts allowed. The allowance for doubtful accounts at the end of 2022 was the same as at the end of 2021. No receivables were charged against the allowance during 2022. The proceeds from the note payable were used to finance a new store building. Share capital was sold to provide additional working capital.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Debbie Company provided the following data:
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Long term investment
Property, plant and equipment
Accumulated depreciation
Accounts payable
Accrued expenses
Dividend payable
Note payable-long term debt
Share capital
Retained earnings
Net credit sales
Cost of goods sold
Expenses
Net income
2022
300,000
840,000
660,000
100,000
80,000
1,130,000
110,000
530,000
140,000
70,000
500,000
1,200,000
560,000
6,400,000
5,000,000
1,000,000
400,000
All accounts receivable and accounts payable relate to trade merchandise.
Accounts payable are recorded net and always paid to take all of the discounts allowed.
2021
The proceeds from the note payable were used to finance a new store building.
Share capital was sold to provide additional working capital.
200,000
580,000
420,000
50,000
600,000
50,000
440,000
130,000
900,000
330,000
4,000,000
3,200,000
520,000
280,000
The allowance for doubtful accounts at the end of 2022 was the same as at the end of 2021. No receivables were charged against
the allowance during 2022.

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