Question

Please complete the October adjusting journal entries with the information provided. (Not all information provided may be relevant in completing the question).

		Inventory Information
Inventory on hand at the beginning of October:
	Units	Cost / unit	Total Cost
Purchase # 1	15	60	$900
Purchase # 2	25	70	1,750
	40		$2,650
	October 2018 transactions related to buying and selling widget inventory
	1-Oct	Sold 30 widgets at $125 each on credit
	3-Oct	Purchased 60 widgets at a cost of $80 per widget on credit
	10-Oct	Sold 45 widgets at $150 each on credit
	20-Oct	Purchased 40 widgets at a cost of $85 per widget on credit
	24-Oct	Sold 35 widgets at $165 each on credit
The PHYSICAL count of widget inventory on hand at October 31, 2018 shows 23 widgets at a FIFO cost of $1,955.

Beginning Inventory	Units	Cost / unit	Cost
	15	60	900
	25	70	1,750
	40		2,650

		Number of Days Outstanding
	Total	0-30	31-60	61-90	91-120	over 120
Accounts Receivable	$     163,075	$146,768	$     6,523	$     3,262	$     4,892	$     1,631
% Uncollectible		0.02	0.06	0.075	0.08	0.09
Estimated Uncollectible	$         4,109	2,935	391	245	391	147

Answer 1

01-Oct	Accounts receivable	3750	(125*30)
	Sales revenue		3750
	Cost of goods sold	1950	(15*60+15*70)
	Inventory		1950
03-Oct	Inventory	4800	(60*80)
	Accounts payable		4800
10-Oct	Accounts receivable	6750	(150*45)
	Sales revenue		6750
	Cost of goods sold	3500	(10*70+35*80)
	Inventory		3500
20-Oct	Inventory	3400	(40*85)
	Accounts payable		3400
24-Oct	Accounts receivable	5775	(35*165)
	Sales revenue		5775
	Cost of goods sold	2850	(25*80+10*85)
	Inventory		2850
	Adjusting entries
31-Oct	Cost of goods sold	595	(7*85)
	Inventory		595
31-Oct	Bad debbt expense	4109
	Allowance for doubtful Accounts		4109