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allowance for uncollectible accounts during the year. 3) The Lily Company uses the percent of...

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Accounting

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allowance for uncollectible accounts during the year. 3) The Lily Company uses the percent of receivables method of accounting for uncollectible accounts receivable., and a perpetual inventory system. As of January 1, its net accounts receivable totaled $192,000 (Accounts Receivable $200,000 less an $8,000 Allowance for Doubtful Accounts). During the current year, the following transactions occurred. 1) Merchandise costing $1,050,000 was sold on account for $1,400,000 2) The company collected $1,294.000 from customers on account. 3) $6,000 of accounts receivable were deemed uncollectible and written off. 4) $1,000 of accounts receivable previously written off as uncollectible were recovered. 5) At year-end, Lily Company estimates that 4% of its accounts receivable are uncollectible. Prepare journal entries to record these transactions

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