Liang Company began operations in Year 1. During its first two years, the company completed a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Liang Company began operations in Year 1. 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. Year 1 a. Sold $1,350,400 of merchandise on credit (that had cost $982,700), terms n/30. b. Wrote off $20,700 of uncollectible accounts receivable. c. Received $671,000 cash in payment of accounts receivable. 1 d. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible. Year 2 e. Sold $1,552,200 of merchandise (that had cost $1,294,200) on credit, terms n/30. f. Wrote off $27,100 of uncollectible accounts receivable. g. Received $1,147,300 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system, and it applies the allowance method for its accounts receivable.) Note: Round your intermediate calculations to the nearest dollar. Liang Company began operations in Year 1. 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. Year 1 a. Sold $1,350,400 of merchandise on credit (that had cost $982,700), terms n/30. b. Wrote off $20,700 of uncollectible accounts receivable. c. Received $671,000 cash in payment of accounts receivable. 1 d. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible. Year 2 e. Sold $1,552,200 of merchandise (that had cost $1,294,200) on credit, terms n/30. f. Wrote off $27,100 of uncollectible accounts receivable. g. Received $1,147,300 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system, and it applies the allowance method for its accounts receivable.) Note: Round your intermediate calculations to the nearest dollar.
Expert Answer:
Answer rating: 100% (QA)
To record Liang Companys Year 1 and Year 2 summarized transactions and yearend adjustments the follo... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
AIM 2.6: Define time class with hour and minute. Also define addition method to add two time objects.
-
Exhibits 7.17 and 7.18 provide footnote excerpts to the financial reports of The Coca-Cola Company and Eli Lilly and Company that discuss the stock option grants given to the employees of the two...
-
Similar to Problem 7.21, except that bearings are required, and fixed bearing AB = N33o46'25'' E. In problem 7.21 Compute azimuths of all lines for a closed traverse ABCDEFA that has the following...
-
Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 56,000 machine-hours would be...
-
By what percent is the flowrate reduced in the rectangular channel shown in Fig. P10.37 because of the addition of the thin center board? All surfaces are of the same material. Figure P10.37 b/2 b/2-...
-
The Moto Hotel opened for business on May 1.2017. Here is its trial balance before adjustment on May 31. Other data: 1. Insurance expires at the rate of $450 per month. 2. A count of supplies shows...
-
Sunspot Beverages, Limited, of Fiji uses the weighted-average method of process costing. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then...
-
Write a personal statement, this statement will be used not only for evaluating your eligibility for admissions, but also for potential consideration for certain college scholarships. Use our...
-
Use Gaussian estimation and show all processes. 2x Show that the function T: R R2 is not a linear transformation: T T(*)) = [*1] + 20 Determine if the linear transformation T: Rm R" given by T(x) =...
-
In Vroom's formula, nonchalance instrumentality 0000 valence expectancy refers to a person's perception of his or her ability (probability) to accomplish an objective.
-
In a traditional 16- week-semester 3 credit-hour course, students are expected to spend 3 hours per week in class (or absorbing online material), and double that (6 hours per week) studying on their...
-
Text-dependent questions 1 For myself and for our Nation, I want to thank my predecessor for all he has done to heal our land. 2 In this outward and physical ceremony we attest once again to the...
-
Differentiate between Market and Book Value of an asset. Define how the Book Value of an asset is calculated for tax purposes. Explain how the market or sales value of an asset might be estimated.
-
Locate the name of the owner, as listed on the deed, of the residential property located at 5555 Walnut Hill Lane in Dallas, TX.
-
A container holds 2.0 mol of gas. The total average kinetic energy of the gas molecules in the container is equal to the kinetic energy of an 8.0 10-3-kg bullet with a speed of 770 m/s. What is the...
-
A reversible heat engine operates between two reservoirs at temperatures of \(600^{\circ} \mathrm{C}\) and \(40^{\circ} \mathrm{C}\). The engine drives a reversible refrigerator which operates...
-
A domestic food freezer maintains a temperature of \(-15^{\circ} \mathrm{C}\). The ambient air temperature is \(30^{\circ} \mathrm{C}\). If heat leaks into the freezer at the continuous rate of...
-
2 kg of water at \(80^{\circ} \mathrm{C}\) is mixed adiabatically with \(3 \mathrm{~kg}\) of water at \(30^{\circ} \mathrm{C}\) in a constant pressure process of 1 atmosphere. Find the increase in...
Study smarter with the SolutionInn App