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5 art 1 of 2 Required information 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 2:13:33 Balances January 1, current year Accounts receivable (various customers) $119,000 Allowance for doubtful accounts 6,080 Book Print In the following ordet, except for cash sales, the company sold merchandise and made collections on credit terms 2/0, 1/30 (assume a unit sales price of $600 in all transactions), Transactions during current year a Sold merchandise for cash, 5258,000. b. Sold merchandise to R Smith invoice price. $8,000 Sold merchandise to K Miller, Invoice price, $40,000. d. Two days after purchase date, R. Smith returned one of the units purchased in () and received account credit e. Sold merchandise to B. Sears, Invoice price $26.000 LR.Smith paid his account in full within the discount period. o collected $93.000 cash from customer sales on credit in prior year, alt within the discount periods. h K. Miler paid the invoice in (within the discount period Sold merchandise to R. Roy Invoice price, $24,500 1. 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 $7,000 cash on an account receivable on sales in a prior year L Wrote off a prior year account of $3,000 after deciding that the amount would ever be collected m. The estimated bad debt rate used by the company was 10 percent of credit sches net of returns Required: 1. 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 fignore cost of goods sold). The first transaction is used as an example. (Round your answers to the nearest whole dollar amount. Any decrease in account balances should be indicated by a minus sign) Sales Sales Sales Bad Transaction Retums Discounts Revenue Debt (takan) and Allowances Expense 5 258,000 D a d e 9 h. L m Total 5 258.000 $ ols o $ 0 2. Show how the accounts related to the preceding sale and collection activities should be reported on the current year income statement. (Round your answers to the nearest whole dollar amount.) SYKES COMPANY Income Statement (partial) For the Year Ended December 31, Current Year Not sales revenue Selling general, and administrative expenses

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