P$6-1($Algo$)$ Reporting Net Sales and Expenses with Discounts, Returns, and Bad Debts LO$6-1,6-2$Skip to question$[$The following information applies to the questions displayed below.$]$The following data were selected from the records of Sykes Company for the year ended December $31,$ current year.Balances January $1,$ current year Accounts receivable $($various customers$)$$$123,000$Allowance for doubtful accounts$7,000$In the following order, except for cash sales, the company sold merchandise and made collections on credit terms $4/10,$ n$/30($assume a unit sales price of $$900$ in all transactions$).$Transactions during current year:Sold merchandise for cash, $$234,000.$Sold merchandise to R$.$ Smith; invoice price, $$11,000.$Sold merchandise to K$.$ Miller; invoice price, $$36,000.$Two days after purchase date, R$.$ Smith returned one of the units purchased in $($b$)$ and received account credit.Sold merchandise to B$.$ Sears; invoice price, $$23,000.$R$.$ Smith paid his account in full within the discount period.Collected $$98,000$ cash from customer sales on credit in prior year, all within the discount periods.K$.$ Miller paid the invoice in $($c$)$ within the discount period.Sold merchandise to R$.$ Roy; invoice price, $$26,500.$Three days after paying the account in full, K$.$ Miller returned seven defective units and received a cash refund.After the discount period, collected $$6,000$ cash on an account receivable on sales in a prior year.Wrote off a prior year account of $$3,000$ after deciding that the amount would never be collected.The estimated bad debt rate used by the company was $1\mathrm{.}0$ percent of credit sales net of returns.

Required information

P$6-1($Algo$)$ Reporting Net Sales and Expenses with Discounts, Returns, and Bad Debts LO$6-1,6-2$

$[$The following information applies to the questions displayed below.$]$

The following data were selected from the records of Sykes Company for the year ended December $31,$ current year.

Balances January $1,$ current year

Accounts receivable $($various customers$)$ $$123,000$

Allowance for doubtful accounts

$7,000$

In the following order, except for cash sales, the company sold merchandise and made collections on credit terms $4/10,\frac{n}{30}($assume a unit sales price of $$900$ in all transactions$).$

Transactions during current year:

a$.$ Sold merchandise for cash, $$234,000.$

b$.$ Sold merchandise to R$.$ Smith; invoice price, $$11,000.$

c$.$ Sold merchandise to K$.$ Miller; invoice price, $$36,000.$

d$.$ Two days after purchase date, R$.$ Smith returned one of the units purchased in $(b)$ and received account credit.

e$.$ Sold merchandise to B$.$ Sears; invoice price, $$23,000.$

f$.$ R$.$ Smith paid his account in full within the discount period.

g$.$ Collected $$98,000$ cash from customer sales on credit in prior year, all within the discount periods.

h$.$ K$.$ Miller paid the invoice in $($c$)$ within the discount period.

i$.$ Sold merchandise to R$.$ Roy; invoice price, $$26,500.$

j$.$ Three days after paying the account in full, K$.$ Miller returned seven defective units and received a cash refund.

k$.$ After the discount period, collected $$6,000$ cash on an account receivable on sales in a prior year.

I. Wrote off a prior year account of $$3,000$ after deciding that the amount would never be collected.

m $.$ The estimated bad debt rate used by the company was $1\mathrm{.}0$ percent of credit sales net of returns.

Required:

Using the following categories, indicate the effect of each listed transaction, including the write$-$off of the uncollectible account and the adjusting entry for estimated bad debts $($ignore cost of goods sold$).$ The first transaction is used as an example.

Note: Round your answers to the nearest whole dollar amount. Any decrease in account balances should be indicated by a minus sign.

Answer is complete but not entirely correct.

$\backslash$table$[[$Transaction$,$Sales Revenue,Sales Discounts $($taken$),\backslash$table$[[$Sales$],[$Returns and Allowances$]],$Bad Debt Expense$],[$a$.,$$ $234,000,,,],[$b$.,11,000,0vv,0,0(],[$c$.,36,000,0$ O$,0(,0(],[$d$.,0,0vv,900,0(],[$e$.,23,000,0vv,0,0(],[$f$.,0(,(440)*,0,0(],[$g $.,0vv,4,083,0(,0(],[$h$.,0(,1,440,0-,0(],[$i$.,26,500,0,0(,0(],[$j$.,0-,1,440,6,300,0(],[$k$.,0-,0-,0-,0(],[1.,0(,0\%,0(,0(],[$m$.,0vv,0$ V$,0(,893],[$Total$,$$ $330,500,$$ $6,523,$$ $7,200,$$ $893]]$

P$6-1$ Part $2$

$2.$ Show how the accounts related to the preceding sale and collection activities should be reported on the current year income statement.

Note: Round your answers to the nearest whole dollar amount.

Answer is complete but not entirely correct.