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In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 5/10, n/30 (assume a unit sales price

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In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 5/10, n/30 (assume a unit sales price of $500 in all transactions). Transactions during current year a. Sold merchandise for cash, $258,000. b. Sold merchandise to R. Smith; invoice price, $11,500. c. Sold merchandise to K. Miller, invoice price, $28,000 d. Two days after purchase date, R. Smith returned one of the units purchased in (b) and recelved account credit. e. Sold merchandise to B. Sears; invoice price, $28,000 f.R. Smith paid his account in full within the discount period. g. Collected $95,000 cash from customer sales on credit in prior year, all within the discount periods. h. K. Miller paid the invoice in (c) within the discount period 1. Sold merchandise to R. Roy; invoice price, $27,500 J. Three days after paying the account in full, K. Miller returned seven defective units and received a cash refund k After the discount period, collected $5,000 cash on an account receivable on sales in a prior year. 1. Wrote off a prior year account of $2,000 after deciding that the amount would never be collected. m. The estimated bad debt rate used by the company was 1.0 percent of credit sales net of returns. \begin{tabular}{|c|c|c|c|c|c|} \hline Transaction & \multicolumn{2}{|c|}{\begin{tabular}{c} Sales \\ Revenue \end{tabular}} & \begin{tabular}{c} Sales \\ Discounts \\ (taken) \end{tabular} & \begin{tabular}{l} Sales \\ Returns and \\ Allowances \end{tabular} & \begin{tabular}{l} Bad Debt \\ Expense \end{tabular} \\ \hline a. & $ & 258,000 & & & \\ \hline b. & & & & 7 & \\ \hline c. & 7 & & & 7 & \\ \hline d. & 7 & & & 7 & \\ \hline e. & 7 & & & F & \\ \hline f. & 7 & & & 7 & \\ \hline g. & 7 & & & F & \\ \hline h. & 7 & & & 1 & \\ \hline i. & 7 & & & P & \\ \hline j. & 7 & & & 7 & \\ \hline k. & 7 & & & P & \\ \hline 1. & 7 & & & 7 & \\ \hline m & 7 & & & P & \\ \hline Total & $ & 258,000 & $ & $ & $ \\ \hline \end{tabular}

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