The following transactions took place during Septenvbet 2022 : a) The company sold merchandise on account to various retailers for a total anoumt of 538 , on with eredit terms 1.5/10,n/30. Some of these retailers purchased merchandise for a gross amount of $20,000, and paid the tamount due within 10 days. In addition Mik. collected $24,000 from its other customers during the month. b) Two of MKL's customers owed the company a combined amount of $2,500 and were financial trouble during September due to increased competition. They were forced their businesses before the end of September. MKL does not expect to receive any from these two customers and considered their accounts worthless. c) MKL estimates that 5% of its accounts receivable at September 30,2022 will no in the future. Required: 1. Prepare summary journal entries to record the transactions above, as well a adjusting entries at September 30,2022 , which is the end of MKL's fiscal 2. Compute the amount of net sales that would be reported in MKL's stater the year ended September 30, 2022. (2 marks) The following transactions took place during Septenvbet 2022 : a) The company sold merchandise on account to various retailers for a total anoumt of 538 , on with eredit terms 1.5/10,n/30. Some of these retailers purchased merchandise for a gross amount of $20,000, and paid the tamount due within 10 days. In addition Mik. collected $24,000 from its other customers during the month. b) Two of MKL's customers owed the company a combined amount of $2,500 and were financial trouble during September due to increased competition. They were forced their businesses before the end of September. MKL does not expect to receive any from these two customers and considered their accounts worthless. c) MKL estimates that 5% of its accounts receivable at September 30,2022 will no in the future. Required: 1. Prepare summary journal entries to record the transactions above, as well a adjusting entries at September 30,2022 , which is the end of MKL's fiscal 2. Compute the amount of net sales that would be reported in MKL's stater the year ended September 30, 2022. (2 marks)
