Foster incorporated, a registered VAI vendor, bought a delivery vehicle on the day they opened the doors business on 1 November 20.1. The purchase price of the vehicle was R205 200, including VAT. They decided that the accounting date would be 31 October annually. On 1 November 20.4 the vehicle was sold to Hanrod Traders for R102 600 cash (including VAT). Receipt no. RC374 was issued. The following represents a detailed statement of depreciation charges on the vehicle from the date of purchase until the date of sale: Period of depreciation 1 Nov 20.1 - 31 Oct 20.2 1 Nov 20.2 - 31 Oct 20.3 1 Nov 20.3 31 Oct 20.4 Calculation R180 000 x 20% (R180 000 - 36 000) x 20% (R180 000 - 64 800) x 20% Depreciation R 36 000 R 28 800 R 64 800 R 23 040 R 87 840
Q: Problem i ces W The accounting records of Nettle Distribution show the following assets and…
A: Assets :— It is the resources owned by company. Liabilities :— It is the obligation of company…
Q: and LIFO costs under perpetual inventory system The following units of an item were available for…
A: calculation of ending inventory under LIFO and FIFO method
Q: Hw.67. X corporation, an accrual basis taxpayer wishes to adopt the cash basis method for 2022.…
A: The taxpayer has to select the method of accounting that will be used for filing the return when the…
Q: 3. What will be the total investment cost for shares? Show appropriate calculations. 4. Which bonds…
A: Question: 3 What will be the total investment cost for shares? Show appropriate calculations. Read…
Q: Record the transactions listed below. Prepare an Income Statement Prepare a Statement of Owner’s…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Daley Company prepared the following aging of receivables analysis at December 31. Days Past…
A: Under the aging method, first the post adjustment in allowance for doubtful accounts is computed.…
Q: Question 13 A father plans to set aside Php250,000 for his son's college education. If he wishes to…
A: FUTURE VALUE Future value is the value of an Money at a Future date. Future value is the value…
Q: 2. Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but…
A: The study of variances between actual behavior and predicted or planned behavior in budgeting or…
Q: Prepare balance sheet
A: Balance Sheet The resources, obligations, and shareholders' equity of a company are listed on a…
Q: agement will buy instead of making if the company can save at least 0,000 per year. uired: a) Should…
A: Wheels purchase outsider by Rojas company. If produced own corporation than a loss 280000$.
Q: Turner (cable networks and digital media) Home Box Office (pay television) Warner Bros. (films,…
A: Contribution Margin :— It is the difference between sales revenue and variable expenses.…
Q: (Unless otherwise stated, consider each requirement separately.) e. What questions would have to…
A: Operating income refers to the sum value of money gained by an entity through its daily business…
Q: Prepare an income statement under absorption costing Round all final answers to whole dollars.…
A: Please see Step 2 for required information.
Q: On December 31, 2023, Pharoah Company sells production equipment to Coronado Inc. for $51,300.…
A: The seller sells the goods to the customer. Sometimes, sellers sell goods on the warranty to…
Q: 2. Prepare the journal entries for the following transactions of Lily Express Service Company for…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: dge Company produces two models of its product with the same machine. The machine has a capacity of…
A: The product providing highest contribution margin per hour is more profitable and hence, in case of…
Q: Depreciation Expense Change in salaries payable Gain from sale of equipment Change in common stock…
A: calculation of cash flow from operation are as follows
Q: Tanesha D Company Limited makes sales of $6,900,000 over the 2019 fiscal period. If the company…
A: The income statement includes all the revenue and expenses. The resulting amount after deducting…
Q: Required information [The following information applies to the questions displayed below.] At…
A: Balance sheet showing accounts receivables and allowance for doubtful accounts are as follows
Q: Financing Deficit Garlington Technologies Inc.'s 2019 financial statements are shown below: Income…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: French Taylor is a new staff accountant for Fashion House Beauty Supply. He has asked you to review…
A: Income Statement is the financial statement that records all the income and expenses of the business…
Q: A machine is depreciated using the sum of the years’ digit method. The total depreciation after 12…
A:
Q: Alester holds a Php32,400 simple interest note at 12.5% rate from Chloe which is payable in one…
A: Step-by-step explanation:- The final value of the note at 12.5% simple interest = 32,400 x 1.125 =…
Q: Which of the following statements is the MOST accurate? A) International trade in assets can make…
A: International trade The trade that occurs between the two countries or businesses of two countries…
Q: Neptune Company has developed a small inflatable toy that it is anxious to introduce to its…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: At the end of the first pay period of the year, Dan earned $5,000 of salary. Withholdings from Dan's…
A: Wages refer to the amount that an employee receives for the services rendered by them to the…
Q: Modern Garden operates a commercial nursery where it grows plants for garden centers throughout the…
A: TARGET INCOME Target income is Computed by Multiplying Desired Rate of Return with Investment. The…
Q: Berti Corporation manufactures and sells a single product. Cost data for the product are given…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: The controller of the Blade Company wants you to estimate a cost function from the following two…
A: Cost Function The cost function formula is: C(x) = F + V(x) Where, C = Cost x =…
Q: Crazy Sam's Deals produces and sells widgets each month. The accounts used multiple regression to be…
A: Intercept = 482171.92 Production (Units) Coefficient = 2.49 Production Lot Size Coefficient =…
Q: explain the similarities and differences between financial and management accounting. discuss any…
A: Financial accounting is the practise of recording earnings, outlays, assets, and liabilities that…
Q: Hadiya Benzema is reviewing her assets and liabilities. What is her net worth? Assets: Cash in…
A: Net worth is defined as the amount that is arrived at by subtracting the value of total liabilities…
Q: Karla Tanner opened a Web consulting business called Linkworks and completed the following…
A: Journal Entry In order to document a commercial transaction in the financial records of the company,…
Q: a. The owner invests $14,000 cash and an automobile valued at $34,000 in the company in exchange for…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Question 19 The amount of annuity that is payable for 5 years at 12% compounded monthly is…
A: The question is based on the concept of Annuity in Financial Accounting. Annuity refers to the…
Q: Question 18 What is the present value of the annuity that is payable quarterly for 4 years at 10%…
A: Present value of annuity is today's value of all annuity payments of future at given discount rate.…
Q: Management decided to undertake a physical inventory count in resolving a perceived weakness in the…
A: In case of trading and manufacturing businesses, inventory is one of the most important part of the…
Q: Question: 1) What is an Accounting System (AIS) - Discuss.
A: Business means an organization, or a company engaged in commercial, industrial, and professional…
Q: rand-new car has a list price of ₱850, 000. The car dealer is giving a trade discount of 10% and…
A: Introduction: An amortization schedule is a table It is provided the details of the fixed intervals…
Q: The following information has been collected from the cost records of P&L company for the year…
A: The traditional method of overhead allocation is based on a predetermined overhead rate. The…
Q: Miller Company's contribution format income statement for the most recent month is shown below: Per…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a…
A: The differential analysis is performed to analyze the different alternatives available with the…
Q: Olga is the proprietor of a small business. In 2020, the business's income, before consideration of…
A: Section 179 seems to be a tax deduction which decreases an individual's taxable income by the value…
Q: The second paragraph or step 2, is that what I can use to create the diagram?
A: Audit Trail - A collection of papers known as an audit trail serves to verify the transactions you…
Q: If Php10,568 is th Php13,500 is discounted discount rate?
A: Discount - A discount is a reduction in price or a percentage taken off of the item's real selling…
Q: Question 2 How much is the present value which will amount to Php 78,000 if it is invested for 234…
A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…
Q: Cooper Corporation makes bicycles. For many years, Cooper has made the rear wheel assembly for its…
A: According to the given question, we are required to compute the total product cost and give…
Q: 1. 2. 3. a) Prepare (summary) journal entries to record the items noted above. (If no entry is…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Tweedy Pharmaceuticals engaged in the following activities during 20X6. Review each and prepare any…
A: Golden Rules of Accounting: Account Type Debit Credit Personal Accounts The receiver the giver…
Q: TWO components of internal control
A: Audit refers to the process of checking books of accounts. It is very important to have an audit of…
Use the information at the top of this screen (next to Instructions) to complete the general ledger of Foster Incorporated:
Step by step
Solved in 3 steps
- Nido Co. has a standing agreement with a supplier for purchasing car parts. The terms of the agreement are 3/15, n/30 from the invoice date of September 1. The company makes a purchase on September 1 for $5,000 and pays the amount due on September 13. What amount does Nido Co. pay in cash on September 13? A. $5,000 B. $4,850 C. $150 D. $4,250The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
- Blue Barns purchased 888 gallons of paint at $19 per gallon from a supplier on June 3. Terms of the purchase are 2/15, n/45, invoice dated June 3. Blue Barns pays their account in full on June 20. On June 22, Blue Barns discovers 20 gallons are the wrong color and returns the gallons for a full cash refund. Record the journal entries to recognize these transactions for Blue Barns.Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.
- On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalRecord the journal entry for each of the following transactions. Glow Industries purchases 750 strobe lights at $23 per light from a manufacturer on April 20. The terms of purchase are 10/15, n/40, invoice dated April 20. On April 22, Glow discovers 100 of the lights are the wrong model and is granted an allowance of $8 per light for the error. On April 30, Glow pays for the lights, less the allowance.The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Yang Restaurant Equipment does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, 850. 2L. Yang, the owner, invested an additional 4,500 in the business. 4Bought merchandise on account from Valentine and Company, invoice no. A694, 2,830; terms 2/10, n/30; dated January 2. 4Received check from Velez Appliance for 980 in payment of invoice for 1,000 less discount. 4Sold merchandise on account to L. Parrish, invoice no. 6483, 755. 6Received check from Peck, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Frost and Son, in payment of invoice no. C127 for 600 less discount. 7Bought supplies on account from Dudley Office Supply, invoice no. 190B, 93.54; terms net 30 days. 7Sold merchandise on account to Ewing and Charles, invoice no. 6484, 1,115. 9Issued credit memo no. 43 to L. Parrish, 47, for merchandise returned. 11Cash sales for January 1 through January 10, 4,454.87. 11Issued Ck. No. 6983, 2,773.40, to Valentine and Company, in payment of 2,830 invoice less discount. 14Sold merchandise on account to Velez Appliance, invoice no. 6485, 2,100. 14Received check from L. Parrish, 693.84, in payment of 755 invoice, less return of 47 and less discount. Jan. 19Bought merchandise on account from Crawford Products, invoice no. 7281, 3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, 142 (total 3,842). 21Issued Ck. No. 6984, 245, to A. Bautista for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 3,689. 23Received credit memo no. 163, 87, from Crawford Products for merchandise returned. 29Sold merchandise on account to Bradford Supply, invoice no. 6486, 1,697.20. 29Issued Ck. No. 6985 to Western Freight, 64, for freight charges on merchandise purchased January 4. 31Cash sales for January 21 through January 31, 3,862. 31Issued Ck. No. 6986, 65, to M. Pineda for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 5,899.95; employees federal income tax withheld, 795; FICA Social Security tax withheld, 365.80, FICA Medicare tax withheld, 85.50. 31Recorded the payroll taxes: FICA Social Security tax, 365.80; FICA Medicare tax, 85.50; state unemployment tax, 318.60; federal unemployment tax, 35.40. 31Issued Ck. No. 6987, 4,653.65, for salaries for the month. 31L. Yang, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
- The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Yang Restaurant Equipment does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, 850. 2L. Yang, the owner, invested an additional 4,500 in the business. 4Bought merchandise on account from Valentine and Company, invoice no. A694, 2,830; terms 2/10, n/30; dated January 2. 4Received check from Velez Appliance for 980 in payment of invoice for 1,000 less discount. 4Sold merchandise on account to L. Parrish, invoice no. 6483, 755. 6Received check from Peck, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Frost and Son, in payment of invoice no. C127 for 600 less discount. 7Bought supplies on account from Dudley Office Supply, invoice no. 190B, 93.54; terms net 30 days. 7Sold merchandise on account to Ewing and Charles, invoice no. 6484, 1,115. 9Issued credit memo no. 43 to L. Parrish, 47, for merchandise returned. 11Cash sales for January 1 through January 10, 4,454.87. 11Issued Ck. No. 6983, 2,773.40, to Valentine and Company, in payment of 2,830 invoice less discount. 14Sold merchandise on account to Velez Appliance, invoice no. 6485, 2,100. 14Received check from L. Parrish, 693.84, in payment of 755 invoice, less return of 47 and less discount. Jan. 19Bought merchandise on account from Crawford Products, invoice no. 7281, 3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, 142 (total 3,842). 21Issued Ck. No. 6984, 245, to A. Bautista for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 3,689. 23Received credit memo no. 163, 87, from Crawford Products for merchandise returned. 29Sold merchandise on account to Bradford Supply, invoice no. 6486, 1,697.20. 29Issued Ck. No. 6985 to Western Freight, 64, for freight charges on merchandise purchased January 4. 31Cash sales for January 21 through January 31, 3,862. 31Issued Ck. No. 6986, 65, to M. Pineda for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 5,899.95; employees federal income tax withheld, 795; FICA Social Security tax withheld, 365.80, FICA Medicare tax withheld, 85.50. 31Recorded the payroll taxes: FICA Social Security tax, 365.80; FICA Medicare tax, 85.50; state unemployment tax, 318.60; federal unemployment tax, 35.40. 31Issued Ck. No. 6987, 4,653.65, for salaries for the month. 31L. Yang, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 91; a purchases journal, page 74; a cash receipts journal, page 56; a cash payments journal, page 63; and a general journal, page 119. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.