Reference no: EM133044454

Question - In 2021, Johnson Company's first year of operations, the following transactions occurred:

(a) Inventory costing $425,000 was sold on credit to customers for a total of $675,000. Johnson uses a perpetual inventory system.

(b) During the year, Jung wrote off specific customer accounts totalling $5,000

(c) Cash was received from customers as payment on account, $300,000

(d) Jung estimated that 2.5% of ending accounts receivable would become uncollectible.

Required - Prepare journal entries to record the above transactions. Date all entries at December 31, 2020.