- 32 - National City Bank Account Payee Amount Bob Kelly $164.00 Jim Wilson 200.00 Evelyn Johanson 1,614.00 Wholesale Club 3,000.00 Sam's Club 1,874.15 Cash 1,600.00 The following discussion relates to the items listed above that were withdrawn from the Ameritrust and National City Bank accounts in 1991. a. Raymond A check dated May 30, 1991, written on the Ameritrust account is made payable to Raymond in the amount of $3,173. "E&J Sales" is written on the memo section of the check. The record also shows that a check from E&J Sales made payable to Raymond was deposited into the Ameritrust account on May 30, 1991. Petitioners assert that cost of goods sold in 1991 should be increased to reflect the purchase of the goods for E&J Sales. Raymond explains the check as follows: E&J Sales is a company that sells wholesale; E&J Sales asked Raymond to purchase some merchandise for the company in California and delivered a check in the amount of $3,173 made payable to Raymond; Raymond knew the California company would not accept a third party check; therefore, he deposited the check from E&J Sales into the Ameritrust account and wrote a check to himself in the same amount to pay for the merchandise.Page: Previous 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Next
Last modified: May 25, 2011