Sherman Co began operations on January 1, 2012, and completed several transactions during 2012 and 2013 that involved sales on credit, accounts receivable collections, and bad debts These transactions are summarized as follows 2012 a Sold $ 685,350 of merchandise (that had cost $ 500,000) on credit...

2012 a Accounts Receivable 685350 Sales 685350 To record sales on account Cost of Goods Sold 500000 ...

Sherman Co. began operations on January 1, 2012, and completed several transactions during 2012 and 2013 that

Question:

Sherman Co. began operations on January 1, 2012, and completed several transactions during 2012 and 2013 that involved sales on credit, collections, and bad debts. These transactions are summarized as follows.
2012
a. Sold $ 685,350 of merchandise (that had cost $ 500,000) on credit, terms n/ 30.
b. Received $ 482,300 cash in payment of
c. Wrote off $ 9,350 of uncollectible
d. In adjusting the accounts on December 31, the company estimated that 1% of will be uncollectible.
2013
e. Sold $ 870,220 of merchandise (that had cost $ 650,000) on credit, terms n/ 30.
f. Received $ 990,800 cash in payment of
g. Wrote off $ 11,090 of uncollectible
h. In adjusting the accounts on December 31, the company estimated that 1% of will be uncollectible.

Required
Prepare journal entries to record Sherman’s 2012 and 2013 summarized transactions and its year- end adjusting entry to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its Round amounts to the nearest dollar.)

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...