Sage Incorporated experienced the following transactions for Year 1, its first year of operations:Issued common stock for $90,000 cash.Purchased $195,000 of merchandise on account.Sold merchandise that cost $168,000 for $334,000 on account.Collected $300,000 cash from accounts receivable.Paid $175,000 on accounts payable.Paid $64,000 of salaries expense for the year.Paid other operating expenses of $80,000.Sage adjusted the accounts using the following information from an accounts receivable aging scheduleNumber of Days Past DueAmountPercent Likely to Be UncollectibleAllowance BalanceCurrent$20,4000.01 0 to 308, 5000.05 31 to 601,7000.10 61 to 901,7000.20 Over 90 days1, 7000.50RequiredOrganize the transaction data in accounts under an accounting equation.Prepare the income statement, statement of changes in stockholders' equity, balance sheet, andstatement of cash flows for Sage Incorporated for Year 1.What is the net realizable value of the accounts receivable at December 31, Year 1?

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Answered: Sage Incorporated experienced the…

College Accounting, Chapters 1-27

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Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

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Problem 2CE

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