Use the data presented in P62, which was selected from the records of Larker Company for the
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1. Give the journal entries for these transactions, including the write-off of the uncollectible account and the adjusting entry for estimated bad debts. Do not record cost of goods sold. Show computations for each entry.
2. Show how the accounts related to the preceding sale and collection activities should be reported on the 2010 income statement. (Treat sales discounts as a contra-revenue.)
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