Several boxes of supplies and inventory were damaged after a

Several boxes of supplies and inventory were damaged after a prolonged power failure. The following
items were not usable and should be written off:
Sterilized needles $120
Other supplies $80
Tattoo gun $250
30 tubes Ink – Permanent Colour accept cost price
20 tubes Ink – Temporary Colour accept cost price
Allocate 100% of the cost of equipment and supplies to the Services division and 100% of the cost of
damaged ink inventory to the Sales division. Create new General Ledger Group expense account 5210
Damaged Supplies and Equipment. (Hint: two journal entries are required.)

Cash Receipt #358 Dated April 11, 2022
From Wanda Wonder, cheque #344 for $901.67 in payment of invoice #3110, taking into account 1%
sales discount of $9.11 for early payment.
Cash Receipt #359 Dated April 11, 2022
From Stan Stoner, cheque #2789 for $1 000 as deposit #107 in prepayment for tattoo work to be
completed over several weeks.

Sales Invoice #3112 Dated April 13, 2022
To Stan Stoner
4 Designs – Large $100 each
10 Ink – Permanent Outline 10 /tube
40 Ink – Permanent Colour 10 /tube
20 Tattoo application 80 /session
HST Charged 13 %
Terms: 1/15, net 30
Allocate 100% of sales to Sales Division and 100% of services to services Division. Accept message.

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