Peru Industries began operations on January 1, 2020. During the next two years, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts (assume a perpetual inventory system). These transactions are summarized as follows: 2020 1. Sold merchandise on credit for $2,280,000, terms n/30 (COGS = $1,258,000). 2. Wrote off uncollectible accounts receivable in the amount of $34,600. 3. Received cash of $1,354,000 in payment of outstanding accounts receivable. 4. In adjusting the accounts on December 31, concluded that 1.5% of the outstanding accounts receivable would become uncollectible. 2021 1. Sold merchandise on credit for $2,982,000, terms n/30 (COGS = $1,619,000). 2. Wrote off uncollectible accounts receivable in the amount of $53,900. 3. Received cash of $2,246,000 in payment of outstanding accounts receivable. 4. In adjusting the accounts on December 31, concluded that 1.5% of the outstanding accounts receivable would become uncollectible. The company uses the allowance method to account for uncollectible. Question: For year 2021 1a). Record the sales 1b). Record cost of sales 2. Record written off uncollectible accounts 3. Record collections from credit customers 4. Record the estimate for uncollectible accounts
Peru Industries began operations on January 1, 2020. During the next two years, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts (assume a perpetual inventory system). These transactions are summarized as follows: 2020 1. Sold merchandise on credit for $2,280,000, terms n/30 (COGS = $1,258,000). 2. Wrote off uncollectible accounts receivable in the amount of $34,600. 3. Received cash of $1,354,000 in payment of outstanding accounts receivable. 4. In adjusting the accounts on December 31, concluded that 1.5% of the outstanding accounts receivable would become uncollectible. 2021 1. Sold merchandise on credit for $2,982,000, terms n/30 (COGS = $1,619,000). 2. Wrote off uncollectible accounts receivable in the amount of $53,900. 3. Received cash of $2,246,000 in payment of outstanding accounts receivable. 4. In adjusting the accounts on December 31, concluded that 1.5% of the outstanding accounts receivable would become uncollectible. The company uses the allowance method to account for uncollectible. Question: For year 2021 1a). Record the sales 1b). Record cost of sales 2. Record written off uncollectible accounts 3. Record collections from credit customers 4. Record the estimate for uncollectible accounts
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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Transcribed Image Text:Peru Industries began operations on January 1, 2020. During the next two years, the company completed a number of
transactions involving credit sales, accounts receivable collections, and bad debts (assume a perpetual inventory
system). These transactions are summarized as follows:
2020
1. Sold merchandise on credit for $2,280,000, terms n/30 (COGS = $1,258,000).
2. Wrote off uncollectible accounts receivable in the amount of $34,600.
3. Received cash of $1,354,000 in payment of outstanding accounts receivable.
4. In adjusting the accounts on December 31, concluded that 1.5% of the outstanding accounts receivable would
become uncollectible.
2021
1. Sold merchandise on credit for $2,982,000, terms n/30 (COGS = $1,619,000).
2. Wrote off uncollectible accounts receivable in the amount of $53,900.
3. Received cash of $2,246,000 in payment of outstanding accounts receivable.
4. In adjusting the accounts on December 31, concluded that 1.5% of the outstanding accounts receivable would
become uncollectible.
The company uses the allowance method to account for uncollectible.
Question: For year 2021
1a). Record the sales
1b). Record cost of sales
2. Record written off uncollectible accounts
3. Record collections from credit customers
4. Record the estimate for uncollectible accounts
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