CHAPTER 8 Receivables Problem 8-6A Recording accounts receivable transactions and bad debt adjustments L01.2.2 CHECK FIGURES: d. Bad Debt Expense = $47,290; h. Bad Debt Expense = $63,155 Peru Industries began operations on January 1, 2020. The company plans to use the allowance method for uncollectible accounts. During the next two years, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts (assume a perpetual inventory system). These trans. actions are summarized as follows: 2020 a. Sold merchandise on credit for $2,250,000, terms n/30 (COGS = $1,240,000). b. Wrote off uncollectible accounts receivable in the amount of $34,000. c. Received cash of $1,330,000 in payment of outstanding accounts receivable. d. In adjusting the accounts on December 31, concluded that 1.5% of the outstanding accounts receivable would become uncollectible. 2021 e. Sold merchandise on credit for $2,940,000, terms n/30 (COGS = $1,592,000). f. Wrote off uncollectible accounts receivable in the amount of $53,000. g. Received cash of $2,210,000 in payment of outstanding accounts receivable. h. In adjusting the accounts on December 31, concluded that 1.5% of the outstanding accounts receiva would become uncollectible. Required Prepare journal entries to record Peru's 2020 and 2021 summarized transactions and the adju entries to record bad debt expense at the end of each year.