The following data were selected from the records of Sykes Company for the year ended December 31, Current Year.

Balances January 1,Current year
Accounts receivable (various customers) $ 120,000
Allowance for doubtful accounts 8,000

In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 2/10, n/30 (assume a unit sales price of $500 in all transactions and use the gross method to record sales revenue).

Transactions during Current year

A) Sold merchandise for cash, $235,000.

B) Sold merchandise to R. Smith; invoice price, $11,500.

C) Sold merchandise to K. Miller; invoice price, $26,500.

D) Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit.

E) Sold merchandise to B. Sears; invoice price, $24,000.

F) R. Smith paid his account in full within the discount period.

G) Collected $98,000 cash from customer sales on credit in prior year, all within the discount periods.

H) Miller paid the invoice in (c) within the discount period.

I) Sold merchandise to R. Roy; invoice price, $19,000.

J) Three days after paying the account in full, K. Miller returned seven defective units and received a cash refund.

K) After the discount period, collected $6,000 cash on an account receivable on sales in a prior year.

L) Wrote off a prior year account of $3,000 after deciding that the amount would never be collected.

M) The estimated bad debt rate used by the company was 1.5 percent of credit sales net of returns.

Journal Entry

A) Debit Bank 235000, Credit sales 235000

B) Debit Accounts receivable 11500 Credit sales 11500

C) Debit Accounts receivables 26500 credit sales 26500

D) Debit Sales allowance  500, Credit account receivable 500

E) Debit Accounts Receivables 24000, credit Sales 24000

F) Debit Bank 10780, Debit Sales discount 220,Credit Accounts receivable 11000

G) Debit Bank 98000, debit sales discount 2000, credit Accounts receivables 100000

H) Debit Bank 25970  Debit sales discount 530 Credit Accounts receivables 26500

I) Debit Accounts receivables 19000, Credit Sales 19000

J) Debit Sales allowance 3500 , Credit bank 3430, Credit sales discount 70

K) Debit Bank 6000, Credit Accounts receivables 6000

L) Debit Bad debts 3000, Credit Accounts receivables 3000

M) no entry, just estimate

ACCOUNTS RECEIVABLE balance at year end

opening balance                                 120000

B)   SALES                                            11500

C) sales                                                 26500

D) sales allowance                              (500)

E) sales                                                 24000

F) Bank                                              ( 10780)

   discount                                             (  220)

G) Bank                                                 (98000)

    discount                                           ( 2000)

H) bank                                                 (25970)

   discount                                               (530)

I) SALES                                                  19000

K) Bank                                                  (6000)

L) Bad debt                                           (3000)

closing balance                                    54000

allowance for bad debt                         (4733)

net closing balance                              49267                                

Allowance for doubtful debt    

1 jan                                  8000

closing                             4733

adjustment                      3267  recorded in income statement as income    

Explanation:

closing balance for provision of doubtful debts net sales * 1.5%

answer; /// i believe that the correct answer is ( contemporary crm)