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At January 1, 2021, Speedway Imports Inc. reported the following on its statement of financial position: Accounts receivable $1,408,000 Allowance for doubtful accounts 94,400 During 2021, the company had the following summary transactions for receivables: 1 2 13. Sales on account $4,320,000, Cost of goods sold, $2,376,000; return rate of 2% Selling price of goods returned $64,000, cost of goods returned to inventory, $35.200 Collection of accounts receivable, $4,320,000 Write offs of accounts receivable deemed uncollectible, $128,000 Collection of accounts previously written off as uncollectible. $57,600 After considering all of the above transactions, total estimated uncollectible accounts, $83.200 4 5. 6. No. Account Titles and Explanation Debit Credit 1. Accounts Receivable Sales (To record sales) Cost of Goods Sold Inventory I (To record cost of goods sold) 2. Sales Accounts Receivable (To record sales returns) Inventory Cost of Goods Sold (To record cost of goods retumed) Accounts Receivable 4. 4 Allowance for Doubtful Accounts Accounts Receivable 5. Accounts Receivable Allowance for Doubtful Accounts (To reverse write-off of account receivable) Cash Accounts Receivable (To record collection of account receivable) Bad Debts Expense Allowance for Doubtful Accounts e Textbook and Media

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