Reporting Net Sales and Expenses with Discounts, Returns, and Bad Debts (AP6-1] The following data were selected from the records of Sykes Company for the year ended December 31, current Balances January 1, current year Accounts receivable (various customers) $120.000 Allowance for doubtful accounts 8.000 In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 2/ unit sales price of $500 in all transactions and use the gross method to record sales revenue]. Transactions during 2014 4. Sold merchandise for cash, $235,000. b. Sold merchandise to R. Smith; invoice price, $11,500. 4. Sold merchandise to K. Miller; invoice price, $26,500. d. Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit. . Sold merchandise to 8. Sears, invoice price, $24,000. E R. Smith paid his account in full within the discount period. a. Collected $98,000 cash from customer sales on credit in prior year, all within the discount periods