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Required information [ The following information applies to the questions displayed below. ] The following data were selected from the records of Sykes Company for
Required information 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 current year. In the following order, except for cash sales, the company sold merchandise and made collections on credit terms assume a unit sales price of $ in all transactions Transactions during current year: a Sold merchandise for cash, $ b Sold merchandise to R Smith; invoice price, $ c Sold merchandise to K Miller; invoice price, $ d Two days after purchase date, R Smith returned one of the units purchased in and received account credit. e Sold merchandise to B Sears; invoice price, $ f R Smith paid his account in full within the discount period. g Collected $ cash from customer sales on credit in prior year, all within the discount periods. h K Miller paid the invoice in c within the discount period. i Sold merchandise to R Roy; invoice price, $ j Three days after paying the account in full, K Miller returned seven defective units and received a cash refund. k After the discount period, collected $ cash on an account receivable on sales in a prior year. I. Wrote off a prior year account of $ after deciding that the amount would never be collected. The estimated bad debt rate used by the company was percent of credit sales net of returns. Required: Using the following categories, indicate the effect of each listed transaction, including the writeoff of the uncollectible account and the adjusting entry for estimated bad debts ignore cost of goods sold The first transaction is used as an example. Note: Round your answers to the nearest whole dollar amount. Any decrease in account balances should be indicated by a minus sign.
Required information
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
current year.
In the following order, except for cash sales, the company sold merchandise and made collections on credit
terms assume a unit sales price of $ in all transactions
Transactions during current year:
a Sold merchandise for cash, $
b Sold merchandise to R Smith; invoice price, $
c Sold merchandise to K Miller; invoice price, $
d Two days after purchase date, R Smith returned one of the units purchased in and received account
credit.
e Sold merchandise to B Sears; invoice price, $
f R Smith paid his account in full within the discount period.
g Collected $ cash from customer sales on credit in prior year, all within the discount periods.
h K Miller paid the invoice in c within the discount period.
i Sold merchandise to R Roy; invoice price, $
j Three days after paying the account in full, K Miller returned seven defective units and received a cash
refund.
k After the discount period, collected $ cash on an account receivable on sales in a prior year.
I. Wrote off a prior year account of $ after deciding that the amount would never be collected.
The estimated bad debt rate used by the company was percent of credit sales net of returns.
Required:
Using the following categories, indicate the effect of each listed transaction, including the writeoff of the
uncollectible account and the adjusting entry for estimated bad debts ignore cost of goods sold The first transaction is
used as an example.
Note: Round your answers to the nearest whole dollar amount. Any decrease in account balances should be
indicated by a minus sign.
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