At December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet.Accounts receivable $647,000Less: Allowance for doubtful accounts 41,000During 2018, the company had the following summary transactions related to receivables and sales. Laramie uses the perpetual inventory system.1. Sales on account amounted to $2,369,000. The cost of the inventory sold was $2,155,790.2. Sales returns and allowances with a total sales price of $38,000 and a cost of $34,580 were restored to inventory.3. Collections of accounts receivable were $2,079,000.4. Write-offs of accounts receivable deemed uncollectible, $46,200.5. Recovery of bad debts previously written off as uncollectible, $13,600. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. No.Account Titles and ExplanationDebitCredit1. (To record sales) (To record cost of the merchandisesold) 2. (To record sales returns andallowances) (To record cost of sales onsales returns) 3. 4. 5. (To reverse write-off of accountreceivable) (To record recovery of uncollectibleamount)

Name: At December 31, 2017, Laramie Imports Inc. reported this information o
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: At December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet.Accounts receivable $647,000Less: Allowance for doubtful accounts 41,000During 2018, the company had the following summary transactions related to receivables a

Answered: At December 31, 2017, Laramie Imports…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

At December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet.

Accounts receivable		$647,000
Less: Allowance for doubtful accounts		41,000

During 2018, the company had the following summary transactions related to receivables and sales. Laramie uses the perpetual inventory system.

1.		Sales on account amounted to $2,369,000. The cost of the inventory sold was $2,155,790.
2.		Sales returns and allowances with a total sales price of $38,000 and a cost of $34,580 were restored to inventory.
3.		Collections of accounts receivable were $2,079,000.
4.		Write-offs of accounts receivable deemed uncollectible, $46,200.
5.		Recovery of bad debts previously written off as uncollectible, $13,600.

Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.

No.	Account Titles and Explanation	Debit	Credit
1.

	(To record sales)


	(To record cost of the merchandise sold)
2.

	(To record sales returns and allowances)


	(To record cost of sales on sales returns)
3.

4.

5.

	(To reverse write-off of account receivable)


	(To record recovery of uncollectible amount)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions