Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 $2,260,000, terms n/30 (COGS = $1,246,000). b. Wrote off uncollectible accounts receivable in the amount of $34,200 c. Received cash of $1,338,000 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 $2,954,000, terms n/30 (COGS = $1,601,000). f. Wrote off uncollectible accounts receivable in the amount of $53,300. g. Received cash of $2,222,000 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 answers to nearest whole dollar.) 2020 1 10 points 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 eBook Print View transaction list . References 1 Record the sales. 2 Record cost of sales. 3 Record written off uncollectible accounts. 4 Record collections from credit customers. 5 Record the estimate for uncollectible accounts. Note: = journal entry has been entered Record entry Clear entry View 2021 View transaction list Journal entry worksheet 2 1 3 5 Record the sales. 2021 View transaction list x 1 Record the sales. 2 Record cost of sales. 3 Record written off uncollectible accounts. 4 Record collections from credit customers. 5 Record the estimate for uncollectible accounts. Note : = journal entry has been entered Record entry Clear entry View

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles Practice And Problems

Authors: Jagdish Prakash

1st Edition

9327244745, 978-9327244748

More Books

Students also viewed these Accounting questions