ProBuilder has the following June 30, 2016, fiscal-year-end unadjusted balances

14.

A company reports the following sales-related information.

Sales, gross	$	205,000		Sales returns and allowances	$	12,000
Sales discounts		4,100		Sales salaries expense		10,100

Prepare the net sales portion only of this company’s multiple-step income statement.

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15.

ProBuilder has the following June 30, 2016, fiscal-year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $11,900. Of the $11,900 of receivables, $2,950 are within a 2% discount period, meaning that it expects buyers to take $59 in future discounts arising from this period’s sales.

a. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future sales discounts.

No	Date	General Journal	Debit	Credit
1	June 30	Sales discountsselected answer correct	59selected answer correct	not attempted
		Allowance for sale discountsselected answer correct	not attempted	59selected answer correct

b. Assume the same facts above and that there is a $14 fiscal-year-end unadjusted credit balance in the Allowance for Sales Discounts. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future sales discounts.

No	Date	General Journal	Debit	Credit
1	June 30	Sales discountsselected answer correct	45selected answer correct	not attempted
		Allowance for sale discountsselected answer correct	not attempted	45selected answer correct

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16.

ProBuilder reports merchandise sales of $84,000 and cost of merchandise sales of $29,400 in its first year of operations ending June 30, 2016. It makes fiscal-year-end adjusting entries for estimated future returns and allowances equal to 1% of sales, or $840, and 1% of cost of sales, or $294.

a. & b. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future returns and allowances related to sales and cost of sales.

No	Date	General Journal	Debit	Credit
1	June 30	Sales returns and allowancesselected answer correct	840selected answer correct	not attempted
		Sales refund payableselected answer correct	not attempted	840selected answer correct
2	June 30	Inventory returns estimatedselected answer correct	294selected answer correct	not attempted
		Cost of goods soldselected answer correct	not attempted	294selected answer correct

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