The Green Thumb Gardener is a retail store that sells plants

The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 31, 2019, the firm\'s general ledger contained the accounts and balances that appear below ACCOUNTS AND BALANCES Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Prepaid Advertising Store Equipment Accumulated Depreciation-store Equipment Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Beth Argo, Capital Beth Argo, Drawing Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Rent Expense Telephone Expense Salaries Expense Payroll Taxes Expense Income Summary Supplies Expense Advertising Expense Depreciation Expense-Store Equipment Depreciation Expense-Office Equipment Uncollectible Accounts Expense 5,500 Dr. 2,400 Dr 50 Cr 11,100 Dr 1,180 Dr 960 Dr 7,980 Dr 1,480 Cr 1,480 Dr 260 Cr 2,605 Cr 410 Cr 86 Cr. 24,451 Cr. 19,800 Dr 89,048 Cr. 1,080 Dr 45,800 Dr 410 Cr 5,800 Dr. 570 Dr 13,900 Dr. 1,250 Dr ADJUSTMENTS a.-b. Merchandise inventory on December 31, 2019, is $12,121 c. During 2019, the firm had net credit sales of $33,000; the firm estimates that 0.6 percent of these sales will result in uncollectible accounts

Solution

The Green Thumb Gardener Worksheet Year ended December 31, 2019 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 5,500 5,500 5,500 Accounts Receivable 2,400 2,400 2,400 Allowance for Doubtful Accounts 50 198 248 248 Merchandise Inventory 11,100 11,100 11,100 12,121 12,121 Supplies 1,180 915 265 265 Prepaid Advertising 960 480 480 480 Store Equipment 7,980 7,980 7,980 Accumulated Depreciation : Store Equipment 1,480 1,480 2,960 2,960 Office Equipment 1,480 1,480 1,480 Accumulated Depreciation : Office Equipment 260 260 520 520 Accounts Payable 2,605 2,605 2,605 Social Security Tax Payable 410 112.22 522.22 522.22 Medicare Tax Payable 86 26.25 112.25 112.25 Federal Unemployment Tax Payable 10.86 10.86 10.86 State Unemployment Tax Payable 97.74 97.74 97.74 Salaries Payable 1,810 1,810 1,810 Beth Argo, Capital 24,451 24,451 21,339.93 Beth Argo, Drawings 19,800 19,800 Sales 89,048 89,048 89,048 Sales Returns and Allowances 1,080 1,080 1,080 Purchases 45,800 45,800 45,800 Purchase Returns and Allowances 410 410 410 Rent Expense 5,800 5,800 5,800 Telephone Expense 570 570 570 Salaries Expense 13,900 1,810 15,710 15,710 Payroll Taxes Expense 1,250 247.07 1,497.07 1,497.07 Supplies Expense 915 915 915 Advertising Expense 480 480 480 Depreciation Expense: Store Equipment 1,480 1,480 1,480 Depreciation Expense: Office Equipment 260 260 260 Uncollectible Account Expense 198 198 198 Income Summary 118,800 118,800 5,390.07 5,390.07 122,795.07 122,795.07 84,890.07 101,579 30,226 30,226