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.