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Peru Industries began operations on January 1, 2020. During the next two years, the company completed a number of transactions involving credit sales, accounts receivable

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Peru Industries began operations on January 1, 2020. During the next two years, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts (assume a perpetual inventory system). These transactions are summarized as follows: 2020 a. Sold merchandise on credit for $2,280,000, terms n/30 (COGS = $1,258,000). b. Wrote off uncollectible accounts receivable in the amount of $34,600. c. Received cash of $1,354,000 in payment of outstanding accounts receivable. d. In adjusting the accounts on December 31, concluded that 1.5% of the outstanding accounts receivable would become uncollectible. 2021 e. Sold merchandise on credit for $2,982,000, terms n/30 (COGS = $1,619.000). f. Wrote off uncollectible accounts receivable in the amount of $53,900. g. Received cash of $2,246,000 in payment of outstanding accounts receivable. h. In adjusting the accounts on December 31, concluded that 1.5% of the outstanding accounts receivable would become uncollectible. Company uses the allowance method to account for uncollectible. Required: Prepare journal entries to record Peru's 2020 and 2021 summarized transactions and the adjusting entries to record bad debt expense at the end of each year. (Round your intermediate calculations and final Required: Prepare journal entries to record Peru's 2020 and 2021 summarized transactions and the adjusting entries to record bad debt expense at the end of each year. (Round your intermediate calculations and final answers to nearest whole dollar.) 2020 View transaction list Journal entry worksheet 1 2 Record the sales. 3 Note: Enter debits before credits Transaction a-1 4 5 General Journal Debit 2021 View transaction list Journal entry worksheet 2 Record the sales. 3 Note: Enter debits before credits. Transaction Record entry 5 General Journal Clear entry Debit Credit View general journal

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