Lopez Company began operations on January 1, 2010. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.
2010
a. Sold $1,354,700 of merchandise (that had cost $975,100) on credit, terms n/30.
b. Wrote off $19,200 of uncollectible accounts receivable.
c. Received $669,700 cash in payment of accounts receivable.
d.
In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable will be uncollectible.
2011
e. Sold $1,597,800 of merchandise (that had cost $1,346,500) on credit, terms n/30.
f. Wrote off $34,800 of uncollectible accounts receivable.
g. Received $1,189,500 cash in payment of accounts receivable.
h.
In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable will be uncollectible.
Required:
Prepare journal entries to record Lopez’s 2010 and 2011 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system.) (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)
2010
a. Sold $1,354,700 of merchandise (that had cost $975,100) on credit, terms n/30.
b. Wrote off $19,200 of uncollectible accounts receivable.
c. Received $669,700 cash in payment of accounts receivable.
d.
In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable will be uncollectible.
2011
e. Sold $1,597,800 of merchandise (that had cost $1,346,500) on credit, terms n/30.
f. Wrote off $34,800 of uncollectible accounts receivable.
g. Received $1,189,500 cash in payment of accounts receivable.
h.
In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable will be uncollectible.
Required:
Prepare journal entries to record Lopez’s 2010 and 2011 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system.) (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Asked Nov 09, 2012
0