Problem 8-6A Recording accounts receivable transactions and bad debt adjustments LO1, 2, 3 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 $2,150,000, terms n/30 (COGS = $1,185,000). b. Wrote off uncollectible accounts receivable in the amount of $32,500. c. Received cash of $1,271,000 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. eBook 2021 References e. Sold merchandise on credit for $2,809,000, terms n/30 (COGS = $1,522,000) f. Wrote off uncollectible accounts receivable in the amount of $50,600 g. Received cash of $2,113,000 in payment of outstanding accounts receivable h. In adjusting the accounts on December 31, concluded that 15% 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 View transaction list View journal entry worksheet No Transaction 11 General Journal Credit 1 Accounts receivable Sales Debi 2,150,000 2,150,000 2. 3-2 Cost of goods sold Merchandise inventory 1.185.000 1.185.000 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 View journal entry worksheet No Transaction General Journal Credit Debit 2,150,000 1 Accounts receivable Sales Book 2,150,000 / 2 a-2 1,185,000 Print Cost of goods sold Merchandise inventory 1,185,000 References 3 D Allowance for doubtful accounts Accounts receivable 32,500 32,500 2 4 C Cash Accounts receivable 1.271,000 1,271,000 d Bad debt expense Allowance for doubtful accounts 2021 ok View transaction list View journal entry worksheet No Transaction General Journal Credit Print Debit 2,809,000 1 Accounts receivable Sales 2.809,000 ferences 2 0-2 1,522,000 Cost of goods sold Merchandise inventory 1,522,000 3 50.600 Allowance for doubtful accounts Accounts receivable 50,600 4 9 Cash Accounts receivable 2, 113,000 2,113,000 5 h Bad debt expense Allowance for doubtful accounts