Lopez Company began operations on January 1, 2010, and it estimates uncollectible accounts using the allowance method. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.
| 2010 | |
| a. | Sold $1,350,500 of merchandise (that had cost $979,900) on credit, terms n/30. |
| b. | Wrote off $18,600 of uncollectible accounts receivable. |
| c. | Received $669,600 cash in payment of accounts receivable. |
| d. |
In adjusting the accounts on December 31, the company estimated that 2.50% of accounts receivable will be uncollectible. |
| 2011 | |
| e. | Sold $1,563,600 of merchandise (that had cost $1,294,500) on credit, terms n/30. |
| f. | Wrote off $27,500 of uncollectible accounts receivable. |
| g. | Received $1,192,700 cash in payment of accounts receivable. |
| h. |
In adjusting the accounts on December 31, the company estimated that 2.50% of accounts receivable will be uncollectible. |
| Required: |
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Prepare journal entries to record Lopez’s 2010 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system.) (Round your intermediate calculations to the nearest dollar amount.) |
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