ABLE COMPANY

In respónse to your confirmation of accounts payable of Able Company, you received a

statement of account from Medare Co., Inc F ollowing is this statement and jackets from
Able’s cash vouchers payable to Medare (last two for 2015 and first for 2016):

Set up in 2015

           
  CV 12-833 ABLE COMPANY  
   
  Pay to: Medare Co., Inc.  
   
  Invoice  
  1287 1,683  
  1346 985  
  1608 2,381  
  1753 1,745  
  806 1,986  
      8,780  
   
  Account Distibution  
  Merchandise 7,795  
  Repairs expense 985  
  voucher payable 8,780  
           

           
  CV 1-86 ABLE COMPANY  
   
  Pay to: Medare Co., Inc.  
   
  Invoice  
  2541 6,433  
  2652 1,978  
  2731 4,681  
      13,092  
   
  Account Distibution  
  Merchandise 11,114  
  Repairs expense 1,978  
  voucher payable 13,092  
           

Set up in 2016

           
  CV ABLE COMPANY  
   
  Pay to: Medare Co., Inc.  
   
  Invoice  
  2103 4,189  
  2462 3,906  
  2506 821  
(
  CM 891 1,208)  
      7,708  
   
  Account Distibution  
  Merchandise 2,981  
  Repairs expense 4,727  
   voucher payable 7,708  
           

             
  MEDARE CO., INC.  
Statement of
  accounts  
   
  With: ABLE COMPANY  
   
  Debit Credit Balance  
   
  Balance 11-30-2015 8,986  
  Inv 1009 486 9,472  
  1287 1,783 11,255  
  Cr. 9,472 1,783  
  Inv 1346 985 2,768  
  1608 3,281 6,049  
  1753 1,745 7,794  
  CM 806 1,986 5,808  
  Inv 2103 4,489 10,297  
  2462 3,906 14,203  
  2491 1,834 16,037  
  2541 6,433 22,470  
  2652 1,978 24,448  
  2731 4,931 29,379  
  Balance, 12-31-2015  
             

Additional Information:

Medare supplies Able with merchandise and certain repair services. Some of these services
are under contract and. are collected in advance. Others are special and are billed when the
services are completed.

The invoices and credit memo are for the following:

Invoice 1009 Merchandise shipped FOB dest. 12/2 486

1287 Merchandise shipped FOB s.p. 12/6 1,683
additional prepaid freight 100 1,783
1346 repair services rendered 12/6, 7 & 8 985
1608 Merchandise shipped FOB dest. 12/12 3,281
1753 Merchandise shipped FOB dest. 12/15 1,745
CM 806 allowance for returned merchandise 1986
Invoice 2103 Merchandise shipped FOB dest. 12/18 4,489
Less collect freight 300 4,189
repair services contract service to be rendered in
2462 2016 3,906
2491 should be charged to Cable Company 1,834
2541 Merchandise shipped FOB dest. 12/28, received 1/3 6,433
2506 repair services rendered 12/23.
invoice, in error, billed by Medare to one of Able's
dealers. The dealer sent the bill to Able for
payment 821
CM 891 allowance for damaged merchandise on
invoice No. 2103, C.M. was dated 1/2/2016.
recorded by Able effective 2015 1,208
Invoice 2652 repair services rendered 12/28 1,978
2731 Merchandise shipped FOB s.p. 12/31 4,631
add - prepaid freight 300
 4,931
Required:

a. Prepare a schedule reconciling Medare’s statement with Able’s vouchers payable to Medare at 12-31-
2015.
b. With respect to the above data, prepare adjusting entries to correct Able’s accounts as of l2-31-2015.