Question: Write journal entries for the following transactions that occurred at Woodside Company during the month of May and explain how each would be disclosed in Woodside's financial statements.
1. The company prepaid $14,340 rent for the period May 1-October 31
2. Sales discounts and allowances were $34,150
3. A loan for $3500 at 12% interest continued to be owned to the company by one of its employees, who made no payments related to this loan during may.
4. Depreciation expense was $13,660
5. Customers paid $2,730 for services they will not receive until sometime in June
6. The company purchased 172$ worth of stamps and used $100 worth
7. The allowance for Doubtful Accounts was increased by $1350, reflecting a new estimate of uncollectible accounts.