Probler |+ t Edge Dec. 2 cost of goods sold 110 merchandise inventory 110 On December 7, Smart Touch delivers equipment to a small retailer on consignment. The cost of the equipment was $1,470 and the combined retail selling price is $2,300. If the retail shop sells the equipment, Smart Touch will pay 20% commission. Both companies use a perpetual inventory method. Date Accounts Debit Credit On December 10, Smart Touch receives notification that APA Corp. from the November 21st transaction has gone out of business. Smart Touch estimates $4,900 allowance for uncollectible accounts and the bad debt expense, assuming that the company will not pay their balance owed. Date Accounts Debit Credit On December 10, paid for inventory purchased on December 1. Date Accounts Debit Credit On December 28, received notification that the consignee sold the inventory that was delivered on