Reference no: EM132898029
Question - At December 31, 2017, Macaron Imports Inc. reported this information on its balance sheet.
Accounts receivable - $638,000
Less: Allowance for doubtful accounts - 39,000
During 2018, the company had the following summary transactions related to receivables and sales. Macaron uses the perpetual inventory system.
1. Sales on account amounted to $2,731,000. The cost of the inventory sold was $2,512,520.
2. Sales returns and allowances with a total sales price of $43,000 and a cost of $39,560 were restored to inventory.
3. Collections of accounts receivable were $2,407,000.
4. Write-offs of accounts receivable deemed uncollectible, $44,100.
5. Recovery of bad debts previously written off as uncollectible, $14,800.
Required - Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.
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