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 $1,352,900 of merchandise (that had cost $979,400) on credit, terms n/30. b. Wrote off $18,100 of uncollectible accounts receivable. c. Received $672,500 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable will be uncollectible. 2011 e. Sold $1,507,500 of merchandise (that had cost $1,313,800) on credit, terms n/30. f. Wrote off $26,200 of uncollectible accounts receivable. g. Received $1,356,100 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable will be uncollectible. Required: 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.)

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 $1,352,900 of merchandise (that had cost $979,400) on credit, terms n/30.
b.	Wrote off $18,100 of uncollectible accounts receivable.
c.	Received $672,500 cash in payment of accounts receivable.
d.	In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable will be uncollectible.

  

2011
e.	Sold $1,507,500 of merchandise (that had cost $1,313,800) on credit, terms n/30.
f.	Wrote off $26,200 of uncollectible accounts receivable.
g.	Received $1,356,100 cash in payment of accounts receivable.
h.	In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable will be uncollectible.

  

Required:

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.)   Prepare journal entries to record Lopez’s 2011 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.) Explanation: 2010            Beginning receivables $ 0        Credit sales   1,352,900        Collections   (672,500)       Write-offs   (18,100)            Ending receivables   662,300        Percent uncollectible   ×  1.40%          Required ending allowance   9,272**   Cr.   Unadjusted balance   18,100     Dr.        Adjustment to the allowance $ 27,372     Cr.      **rounded to nearest dollar    2011                 Beginning receivables       $ 662,300        Credit sales         1,507,500        Collections         (1,356,100)       Write-offs         (26,200)                  Ending receivables         787,500        Percent uncollectible         ×  1.40%                Required ending allowance         11,025**   Cr.   Unadjusted balance                  Beginning (Cr.) $ 9,272               Write-offs (Dr.)   26,200      16,928     Dr.          Adjustment to the allowance       $ 27,953     Cr.            **rounded to nearest dollar