Peru Industries began operations on January $1,2023.$ 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:

$2023$

Sold merchandise on credit for $$2,150,000,$ terms n$/30($COGS $=$ $$1,185,000).$

Wrote off uncollectible accounts receivable in the amount of $$32,500.$

Received cash of $$1,271,000$ in payment of outstanding accounts receivable.

In adjusting the accounts on December $31,$ concluded that $1\mathrm{.}5\%$ of the outstanding accounts receivable would become uncollectible.

$2024$

Sold merchandise on credit for $$2,809,000,$ terms n$/30($COGS $=$ $$1,522,000).$

Wrote off uncollectible accounts receivable in the amount of $$50,600.$

Received cash of $$2,113,000$ in payment of outstanding accounts receivable.

In adjusting the accounts on December $31,$ concluded that $1\mathrm{.}5\%$ of the outstanding accounts receivable would become uncollectible.

Company uses the allowance method to account for uncollectible.

Required:

Prepare journal entries to record Perus $2023$ and $2024$ summarized transactions and the adjusting entries to record bad debt expense at the end of each year. $($Round your intermediate calculations and final answers to nearest whole dollar.$)$

$2023$

$2024$

Answer rating: 100% (QA)

Lets break down the transactions and prepare the journal entries 2023 1 Sold merchandise on credit t... View the full answer