I need help with the statement of returned earnings Accounts Receivable Allowanc

Question

I need help with the statement of returned earnings

Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) $20,570 Unearned Revenue (40 units) $ 11,600 Accounts Payable (Jan Rent) $ (1,550) Notes Payable $ 4,050 Contributed Capital $5,000 $2,600 $16,500 $6,300 4,270 Retained Earnings-Feb 1, 2012 . WWC establishes a policy that it will sell inventory at $150 per unit. . In January, WWC received a $5,000 advance for 40 units, as reflected in Unearned Revenue WWC's February 1 inventory balance consisted of 45 units at a total cost of $4,050. . wwC's note payable accrues interest at a 12% annual rate. wwcwluse hOrmethd adn perpetual bais

Explanation / Answer

Retained Earning - $ 4,270

Add: Net Income - 3,639

Less: Dividends - (750)

Retained Earnings - $ 7,159

Total Sales 26000 Less: Sales Return (2250) Less: Insurance (700) Less: Inventory Purchased but Payable (12750) Less: Inventory Purchased and Paid (340) Less: Wages Paid (2100) Add: Purchase Return 255 Less: Allowance for Doubtful Debts (1650) Less: Rent (2600) Add: Allowance for Doubtful Debts 530 Less: Utility Payable (600) Less: Interest Expenses (165) Add: Interest Receivable 9 NET INCOME 3639

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