On January 1, 2024, the general ledger of Tripley Company included the following account balances:AccountsDebitCreditCash$ 274,000 Accounts receivable74,000 Allowance for uncollectible accounts $ 37,400Inventory33,400 Building243,400 Accumulated depreciation 44,000Land248,600 Accounts payable 190,000Notes payable (8%, due in 3 years) 240,000Common stock 119,600Retained earnings 242,400Totals$ 873,400$ 873,400The $33,400 beginning balance of inventory consists of 334 units, each costing $100. During January 2024, the company had the following transactions:January 2Lent $54,000 to an employee by accepting a 6% note due in six months.January 5Purchased 5,200 units of inventory on account for $572,000 ($110 each) with terms 110/110 , n30/�30 .January 8Returned 100 defective units of inventory purchased on January 5.January 15Sold 5,000 units of inventory on account for $820,000 ($164 each) with terms 210/210 , n30/�30 .January 17Customers returned 200 units sold on January 15. These units were initially purchased by the company on January 5. The units are placed in inventory to be sold in the future.January 20Received cash from customers on accounts receivable. This amount includes $39,400 from 2023 plus amount receivable on sale of 4,400 units sold on January 15.January 21Wrote off remaining accounts receivable from 2023.January 24Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from purchase of 4,800 units on January 5.January 28Paid cash for salaries during January, $62,000.January 29Paid cash for utilities during January, $44,000.January 30Paid dividends, $6,400.Month-end adjusting entries:Of the remaining accounts receivable, the company estimates that 10% will not be collected.Accrued interest revenue on notes receivable for January.Accrued interest expense on notes payable for January.Accrued income taxes at the end of January for $8,400.Depreciation on the building, $5,400. NoDateGeneral Journal1January 02Notes receivableCashDebitCredit2January 05InventoryAccounts payable000054.00054,000572.000672.0003January 08Accounts payableInventory0011,00011,0004January 15Accounts receivable° 820,000Sales revenue°820,0005January 16Cost of goods soldInventory00550,000 O550,000•January 17Salesu°32,000-Accounts receivable°32.8007January 17InventoryCost of goods sold0022.00022.000January 20Cash°761,600Accounts receivable°761,600 O9January 21Allowance for uncollectible accountsAccounts receivable10January 24Accounts payableCash11January 28Salaries expenseCash00 00 0034,600°34,60012January 29xpansCanh00718,000718,00062.00062.00044.00044.00013January 30DividendsCash00°6.400640014=January 31BaddibleAllowance for uncollectible accounts0098409.840 O15January 31Interest receivable°2700Interest revenue°270016January 31°1,600Interest payable°1,60017=January 31Income tax expenseIncome payable18January 31Depreciation expense°8.400°8,400°5.400Accumulated depreciation°5.400 O19January 31787200R20January 31Sales revenueInterest revenueRetained earningsRetained earningsSales retuCost of goods soldSalaries expenseUses expenseBaddeleDepreciation expenseInterest expenDividends1.600 O690040 O788.800000 00000000032.800528,00062.00044,000-98405,4001.6006.400 AssetsCurrent assets:Tripley CompanyBalance SheetJanuary 31, 2024Current liabilities:LiabilitiesCash151,200Accounts payableAccounts receivable65,000Interest payableAllowance for uncollectible accounts(2,800)Income tax payable00033,00000Inventory66,400Total current liabilities33,000Interest receivable0Notes payable240,000Notes receivable54,0000Total current assets333,800Total liabilities273,000Noncurrent Assets:Stockholders' equityBuildings243,400Allowance for uncollectible accountsLand2,800Common stockRetained earnings119,600389,200248,60000Total assets$ 828,600Total stockholders' equityTotal liabilities and stockholders' equity508,800$ 781,800Analyze how well Tripley Company manages its inventory(a) Calculate the inventory turnover ratio for the month of January. If the industry average of the inventory turnover ratio for themonth of January is 4.5 times, is the company selling its inventory more or less quickly than other companies in the sameindustry?The inventory turnover ratio is:timesThe company is managing its inventory more efficiently. (true or false)(b) Calculate the gross profit ratio for the month of January. If the industry average gross profit ratio is 50%, is the companymore or less profitable per dollar of sales than other companies in the same industry?The gross profit ratio is:The company is more profitable than other companies.%(c) Used together, what might the inventory turnover ratio and gross profit ratio suggest about the company's businessstrategy? Is the company's strategy to sell a higher volume of less expensive items or does the company appear to be selling alower volume of more expensive items?The company's business strategy appears to be selling

The Balance Sheet is a financial statement that includes assets, liabilities and stockholder's…

On January 1, 2024, the general ledger of Tripley Company included the following account balances: Accounts Debit Credit Cash $ 274,000 Accounts receivable 74,000 Allowance for uncollectible accounts $ 37,400 Inventory 33,400 Building 243,400 Accumulated depreciation 44,000 Land 248,600 Accounts payable 190,000 Notes payable (8%, due in 3 years) 240,000 Common stock 119,600 Retained earnings 242,400 Totals $ 873,400 $ 873,400 The $33,400 beginning balance of inventory consists of 334 units, each costing $100. During January 2024, the company had the following transactions: January 2 Lent $54,000 to an employee by accepting a 6% note due in six months. January 5 Purchased 5,200 units of inventory on account for $572,000 ($110 each) with terms 110/110 , n30/�30 . January 8 Returned 100 defective units of inventory purchased on January 5. January 15 Sold 5,000 units of inventory on account for $820,000 ($164 each) with terms 210/210 , n30/�30 . January 17 Customers returned 200 units sold on January 15. These units were initially purchased by the company on January 5. The units are placed in inventory to be sold in the future. January 20 Received cash from customers on accounts receivable. This amount includes $39,400 from 2023 plus amount receivable on sale of 4,400 units sold on January 15. January 21 Wrote off remaining accounts receivable from 2023. January 24 Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from purchase of 4,800 units on January 5. January 28 Paid cash for salaries during January, $62,000. January 29 Paid cash for utilities during January, $44,000. January 30 Paid dividends, $6,400. Month-end adjusting entries: Of the remaining accounts receivable, the company estimates that 10% will not be collected. Accrued interest revenue on notes receivable for January. Accrued interest expense on notes payable for January. Accrued income taxes at the end of January for $8,400. Depreciation on the building, $5,400.

On January 1, 2024, the general ledger of Tripley Company included the following account balances: Accounts Debit Credit Cash $ 274,000 Accounts receivable 74,000 Allowance for uncollectible accounts $ 37,400 Inventory 33,400 Building 243,400 Accumulated depreciation 44,000 Land 248,600 Accounts payable 190,000 Notes payable (8%, due in 3 years) 240,000 Common stock 119,600 Retained earnings 242,400 Totals $ 873,400 $ 873,400 The $33,400 beginning balance of inventory consists of 334 units, each costing $100. During January 2024, the company had the following transactions: January 2 Lent $54,000 to an employee by accepting a 6% note due in six months. January 5 Purchased 5,200 units of inventory on account for $572,000 ($110 each) with terms 110/110 , n30/�30 . January 8 Returned 100 defective units of inventory purchased on January 5. January 15 Sold 5,000 units of inventory on account for $820,000 ($164 each) with terms 210/210 , n30/�30 . January 17 Customers returned 200 units sold on January 15. These units were initially purchased by the company on January 5. The units are placed in inventory to be sold in the future. January 20 Received cash from customers on accounts receivable. This amount includes $39,400 from 2023 plus amount receivable on sale of 4,400 units sold on January 15. January 21 Wrote off remaining accounts receivable from 2023. January 24 Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from purchase of 4,800 units on January 5. January 28 Paid cash for salaries during January, $62,000. January 29 Paid cash for utilities during January, $44,000. January 30 Paid dividends, $6,400. Month-end adjusting entries: Of the remaining accounts receivable, the company estimates that 10% will not be collected. Accrued interest revenue on notes receivable for January. Accrued interest expense on notes payable for January. Accrued income taxes at the end of January for $8,400. Depreciation on the building, $5,400.

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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Accounts	Debit	Credit
Cash	$ 274,000
Accounts receivable	74,000
Allowance for uncollectible accounts		$ 37,400
Inventory	33,400
Building	243,400
Accumulated depreciation		44,000
Land	248,600
Accounts payable		190,000
Notes payable (8%, due in 3 years)		240,000
Common stock		119,600
Retained earnings		242,400
Totals	$ 873,400	$ 873,400

January 2	Lent $54,000 to an employee by accepting a 6% note due in six months.
January 5	Purchased 5,200 units of inventory on account for $572,000 ($110 each) with terms 110/110 , n30/�30 .
January 8	Returned 100 defective units of inventory purchased on January 5.
January 15	Sold 5,000 units of inventory on account for $820,000 ($164 each) with terms 210/210 , n30/�30 .
January 17	Customers returned 200 units sold on January 15. These units were initially purchased by the company on January 5. The units are placed in inventory to be sold in the future.
January 20	Received cash from customers on accounts receivable. This amount includes $39,400 from 2023 plus amount receivable on sale of 4,400 units sold on January 15.
January 21	Wrote off remaining accounts receivable from 2023.
January 24	Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from purchase of 4,800 units on January 5.
January 28	Paid cash for salaries during January, $62,000.
January 29	Paid cash for utilities during January, $44,000.
January 30	Paid dividends, $6,400.