Eraesi Company, which uses the perpetual inventory system, began operations on January 1, 2010. At January 1, 2011, the Company reports the following balances.
![519_table 2.png](https://secure.tutorsglobe.com/CMSImages/519_table%202.png)
During the year, the company completed the following transactions involving sales on credit, accounts receivable collections, and bad debts.
a. Sold goods worth $3,475,000 on credit. The cost of these goods was $2,800,000
b. Received $3,150,000 cash from customers for the goods sold on credit.
c. Wrote off $62,000 of uncollectible accounts receivable.
d. The company estimates that 10% of its accounts receivable will be uncollectible.
Required:
A. Record the journal entries for the above select transactions
B. Show how the accounts receivable and the allowance for doubtful accounts appear on the Dec 31, 2011 balance sheet.