Freeman Co. began operations on January 1, 2010, and completed several transactions during 2010 and 2011 that involved sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.
2010
a. Sold $1,346,800 of merchandise (that had cost $980,300) on credit, terms n/30.
b. Received $666,300 cash in payment of accounts receivable.
c. Wrote off $21,000 of uncollectible accounts receivable.
d. In adjusting the accounts on December 31, the company estimated that 1.2% of accounts receivable will be uncollectible.
2011
e. Sold $1,562,400 of merchandise (that had cost $1,339,300) on credit, terms n/30.
f. Received $1,168,400 cash in payment of accounts receivable.
g. Wrote off $30,400 of uncollectible accounts receivable.
h. In adjusting the accounts on December 31, the company estimated that 1.2% of accounts receivable will be uncollectible.
Required
Prepare journal entries to record Freeman’s 2010 and 2011 summarized transactions and its year-end adjusting entry to record bad debts expense. (The company uses the perpetual inventory system. Round amounts to the nearest dollar.)