Required information P6-7 (Algo) (Supplement) Recording Sales, Returns, and Bad Debts [The following information applies to the questions displayed below.] The following data were selected from the records of Sykes Company for the year ended December 31, Current Year. Balances January 1, Current Year Accounts receivable (various customers) Allowance for doubtful accounts $ 121,000 10,000 In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 3/10. n/30 (assume a unit sales price of $600 in all transactions). Transactions during current year a. Sold merchandise for cash, $268,000. b. Sold merchandise to R. Smith; invoice price, $10,000. c. Sold merchandise to K. Miller; invoice price, $48,000 d. Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit e. Sold merchandise to B. Sears; invoice price, $28,000. f. R. Smith paid his account in full within the discount period.