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  3. the following summarized transactions relate to re

The following summarized transactions relate to Retail Ltd. for the year ending December 31, 20x2....

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Accounting

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The following summarized transactions relate to Retail Ltd. for the year ending December 31, 20x2. The company uses the periodic method to account for inventory. Cash sales $ 80,000 Credit sales 720,000 Collection of credit sales 580,000 Write-off of uncollectible accounts receivable 22,000 Recovery of previously written off accounts receivable 4,600 The balance in accounts receivable at January 1, 20x2 was a $100,000 debit, and the balance in allowance for doubtful accounts at that date was a $15,800 credit. Required - Prepare the journal entries to record the activity for Retail, including any year-end adjusting entries, assuming the company uses the balance sheet (accounts receivable) method to estimate bad debt expense. The company estimates that 5% of accounts receivable will ultimately be uncollectible

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