dolution

Bonsai Company, a wholesaler of Asian foods, reported the following transactions for 2004:

1. Purchased 400,000 of merchandise inventory on credit.

2. Sold goods priced at 750,000 on credit.

3. The cost of merchandise sold to customers was 388,000.

4. Paid 384,000 to suppliers of merchandise.

5. Received 720,000 in cash from customers.

6. Granted 17,000 of sales discounts to customers for payment within the discount period.

7. Estimated that 10,000 of the year’s credit sales would be uncollectible.

8. Wrote off 8,000 of accounts as uncollectible.

Required Using the format shown in this chapter, record each of the transactions and determine the amount of net income and net operating cash flow associated with these transactions.