1.?How much of Accounts Receivable were ?written off? the month??
(Hint: Run the ADA t-account)
2. What is Fargo?s Net Realizable Value of Accounts Receivable at the end of July?
3. How much cash was paid on Accounts Payable during the month?? Assume the beginning balance of Accounts Payable in July was zero.
4. If all vendors sell to Fargo on terms 2/10, n/30, what was the total amount of purchases discounts which were allowed to lapse.? No purchases were made in the last 10 days of July.
5. If there was no prepaid advertising at the beginning of the period, what was the total cash outlay for advertising in July? (Hint: Think of converting from accrual basis to cash basis.)
6. How much cash received on accounts receivable in July? ??(Hint: Run the AR t-account)
8. What is the amount of the change to Income Summary account for the closing entry to close Income Summary to Retained Earnings at July 31.
9. After you have adusted inventory and done the four closing entries for the month, what is the ending balance in Retained Earnings on July 31??