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 $2,340,000, terms n/30 (COGS = $1,294,000). b. Wrote off uncollectible accounts receivable in the amount of $35,800. c. Received cash of $1,402,000 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 $3,066,000, terms n/30 (COGS = $1,673,000). f. Wrote off uncollectible accounts receivable in the amount of $55,700. g. Received cash of $2,318,000 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.