Please help with the adjustment section. Mini Practice set 2 The Fashion Rack is a retail merchandising business that sells brand-name clothing at discount prices. The firm is owned and managed by Teresa Lojay, who started the business on April 1, 20X1. This project will give you an opportunity to put your knowledge of accounting into practice as you handle the accounting work of The Fashion Rack during the month of October 20X1. Complete the Adjustments section of the worksheet. Use the following data. Identify each adjustment with the appropriate letter. a. During October, the firm had net credit sales of $9,810. From experience with similar businesses, the previous accountant had estimated that 1.0 percent of the firm’s net credit sales would result in uncollectible accounts. Record an adjustment for the expected loss from uncollectible accounts for the month of October. b. On October 31, an inventory of the supplies showed that items costing $3,240 were on hand. Record an adjustment for the supplies used in October. c. On September 30, 2019, the firm purchased a six-month insurance policy for $8,400. Record an adjustment for the expired insurance for October. d. On October 1, 2019, the firm signed a three-month advertising contract for $4,800 with a local cable television station and paid the full advance. Record an adjustment for the expired advertising for October. e. On April 1, 2019, the firm purchased equipment for $83,000. The equipment was estimated to have a useful life of five years and a salvage value of $12,500. Record an adjustment for depreciation on the equipment for October.
Please help with the adjustment section.
Mini Practice set 2 The Fashion Rack is a retail merchandising business that sells brand-name clothing at discount prices. The firm is owned and managed by Teresa Lojay, who started the business on April 1, 20X1. This project will give you an opportunity to put your knowledge of accounting into practice as you handle the accounting work of The Fashion Rack during the month of October 20X1.
Complete the Adjustments section of the worksheet. Use the following data. Identify each adjustment with the appropriate letter.
a. During October, the firm had net credit sales of $9,810. From experience with similar businesses, the previous accountant had estimated that 1.0 percent of the firm’s net credit sales would result in uncollectible accounts. Record an adjustment for the expected loss from uncollectible accounts for the month of October.
b. On October 31, an inventory of the supplies showed that items costing $3,240 were on hand. Record an adjustment for the supplies used in October.
c. On September 30, 2019, the firm purchased a six-month insurance policy for $8,400. Record an adjustment for the expired insurance for October.
d. On October 1, 2019, the firm signed a three-month advertising contract for $4,800 with a local cable television station and paid the full advance. Record an adjustment for the expired advertising for October.
e. On April 1, 2019, the firm purchased equipment for $83,000. The equipment was estimated to have a useful life of five years and a salvage value of $12,500. Record an adjustment for
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