No$.$ Account Titles and Explanation

Accounts Receivable

$($To record sales$)$

Estimated Inventory Returns

$($To record cost of goods sold$)$At January $1,2024,$ Covington Imports Inc. reported the following on its statement of financial position:

Accounts receivable

$$1,933,000$

Allowance for expected credit losses

$130,400$

During $2024,$ the company had the following summary transactions for receivables:

Sales on account, $$5,940,000$; cost of goods sold, $$3,261,000$; return rate of $2\%$

Selling price of goods returned, $$94,000$; cost of goods returned to inventory, $$50,200$

Collection of accounts receivable, $$5,940,000$

Write$-$offs of accounts receivable deemed uncollectible, $$173,000$

Collection of accounts previously written off as uncollectible, $$80,100$

After considering all of the above transactions, total estimated uncollectible accounts, $$114,700$