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the percent of receivables method of accounting for uncollectible accounts receivable, and a perpetual inventory...

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Accounting

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the percent of receivables method of accounting for uncollectible accounts receivable, and a perpetual inventory system. As of January 1, its n et accounts receivable totaled $485,000 (Accounts Receivable $500,000 less a $15,000 Allowance for Doubtful Accounts). During the curr the following transactions occurred. 1) 2) 3) 4) 5) Merchandise costing $2,400,000 was sold on account for $4,000,000. The company collected $3,880,000 from customers on account. $20,000 $3,000 At of accounts receivable were deemed uncollectible and written off. of accounts receivable previously written off as uncollectible were recovered. year-end, Lily Company estimates that 3% of its accounts receivable are uncollectible. Prepare journal entries to record these transactions

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