Liang Company began operations on January 1, 2016. During its first two years, the company completed...
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Liang Company began operations on January 1, 2016. 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. 2016 a. Sold $1,347,300 of merchandise (that had cost $982,000) on credit, terms n/30. b. Wrote off $20,700 of uncollectible accounts receivable. c. Received $671,400 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible. 2017 e. Sold $1,530,600 of merchandise (that had cost $1,278,800) on credit, terms n/30. f. Wrote off $34,300 of uncollectible accounts receivable. g. Received $1,252,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible. Required: Prepare journal entries to record Liang's 2016 and 2017 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.) (Round your intermediate calculations to the nearest dollar amount.) JE 2016 Prepare journal entries to record Liang's 2016 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.) JE 2017 View transaction list Journal entry worksheet 1 2 Transaction a(1) 3 Sold $1,347,300 of merchandise on credit, terms n/30. Note: Enter debits before credits. Record entry 4 5 General Journal Clear entry Debit Credit View general journal JE 2016 JE 2017 Prepare journal entries to record Liang's 2016 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.) View transaction list Journal entry worksheet 2 3 Record cost of goods sold, $982,000. Note: Enter debits before credits. Transaction a(2) Record entry 4 5 General Journal Clear entry Debit Credit View general journal > JE 2016 Prepare journal entries to record Liang's 2016 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.) JE 2017 View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction b. Record entry 4 Wrote off $20,700 of uncollectible accounts receivable. 5 General Journal Clear entry Debit Credit View general journal > JE 2016 JE 2017 Prepare journal entries to record Liang's 2016 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.) View transaction list Journal entry worksheet 1 2 3 Note: Enter debits before credits. Transaction C. Record entry 4 Received $671,400 cash in payment of accounts receivable. 5 General Journal Clear entry Debit Credit View general journal JE 2016 Prepare journal entries to record Liang's 2016 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.) View transaction list JE 2017 Journal entry worksheet < 1 2 Transaction d. 3 In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible. Note: Enter debits before credits. Record entry 5 General Journal Clear entry Debit Credit View general journal JE 2016 Prepare journal entries to record Liang's 2017 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.) JE 2017 View transaction list Journal entry worksheet 1 2 Transaction e(1) 3 Sold $1,530,600 of merchandise on credit, terms n/30. Note: Enter debits before credits. Record entry 4 5 General Journal Clear entry Debit Credit View general journal JE 2016 Prepare journal entries to record Liang's 2017 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.) View transaction list JE 2017 Journal entry worksheet < 1 2 Transaction e(2) 3 Note: Enter debits before credits. Record cost of goods sold, $1,278,800. Record entry 4 5 General Journal Clear entry Debit Credit View general journal JE 2016 JE 2017 Prepare journal entries to record Liang's 2017 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.) View transaction list Journal entry worksheet < 1 2 Transaction f. 3 Wrote off $34,300 of uncollectible accounts receivable. Note: Enter debits before credits. Record entry 5 General Journal Clear entry Debit Credit View general journal JE 2016 Prepare journal entries to record Liang's 2017 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.) JE 2017 View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction g. Received $1,252,600 cash in payment of accounts receivable. 4 Record entry 5 General Journal Clear entry Debit Credit View general journal JE 2016 JE 2017 Prepare journal entries to record Liang's 2017 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.) View transaction list Journal entry worksheet 1 2 3 In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible. Note: Enter debits before credits. Transaction h. 5 Record entry General Journal Clear entry Debit Credit View general journal Liang Company began operations on January 1, 2016. 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. 2016 a. Sold $1,347,300 of merchandise (that had cost $982,000) on credit, terms n/30. b. Wrote off $20,700 of uncollectible accounts receivable. c. Received $671,400 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible. 2017 e. Sold $1,530,600 of merchandise (that had cost $1,278,800) on credit, terms n/30. f. Wrote off $34,300 of uncollectible accounts receivable. g. Received $1,252,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible. Required: Prepare journal entries to record Liang's 2016 and 2017 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.) (Round your intermediate calculations to the nearest dollar amount.) JE 2016 Prepare journal entries to record Liang's 2016 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.) JE 2017 View transaction list Journal entry worksheet 1 2 Transaction a(1) 3 Sold $1,347,300 of merchandise on credit, terms n/30. Note: Enter debits before credits. Record entry 4 5 General Journal Clear entry Debit Credit View general journal JE 2016 JE 2017 Prepare journal entries to record Liang's 2016 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.) View transaction list Journal entry worksheet 2 3 Record cost of goods sold, $982,000. Note: Enter debits before credits. Transaction a(2) Record entry 4 5 General Journal Clear entry Debit Credit View general journal > JE 2016 Prepare journal entries to record Liang's 2016 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.) JE 2017 View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction b. Record entry 4 Wrote off $20,700 of uncollectible accounts receivable. 5 General Journal Clear entry Debit Credit View general journal > JE 2016 JE 2017 Prepare journal entries to record Liang's 2016 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.) View transaction list Journal entry worksheet 1 2 3 Note: Enter debits before credits. Transaction C. Record entry 4 Received $671,400 cash in payment of accounts receivable. 5 General Journal Clear entry Debit Credit View general journal JE 2016 Prepare journal entries to record Liang's 2016 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.) View transaction list JE 2017 Journal entry worksheet < 1 2 Transaction d. 3 In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible. Note: Enter debits before credits. Record entry 5 General Journal Clear entry Debit Credit View general journal JE 2016 Prepare journal entries to record Liang's 2017 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.) JE 2017 View transaction list Journal entry worksheet 1 2 Transaction e(1) 3 Sold $1,530,600 of merchandise on credit, terms n/30. Note: Enter debits before credits. Record entry 4 5 General Journal Clear entry Debit Credit View general journal JE 2016 Prepare journal entries to record Liang's 2017 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.) View transaction list JE 2017 Journal entry worksheet < 1 2 Transaction e(2) 3 Note: Enter debits before credits. Record cost of goods sold, $1,278,800. Record entry 4 5 General Journal Clear entry Debit Credit View general journal JE 2016 JE 2017 Prepare journal entries to record Liang's 2017 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.) View transaction list Journal entry worksheet < 1 2 Transaction f. 3 Wrote off $34,300 of uncollectible accounts receivable. Note: Enter debits before credits. Record entry 5 General Journal Clear entry Debit Credit View general journal JE 2016 Prepare journal entries to record Liang's 2017 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.) JE 2017 View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction g. Received $1,252,600 cash in payment of accounts receivable. 4 Record entry 5 General Journal Clear entry Debit Credit View general journal JE 2016 JE 2017 Prepare journal entries to record Liang's 2017 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.) View transaction list Journal entry worksheet 1 2 3 In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible. Note: Enter debits before credits. Transaction h. 5 Record entry General Journal Clear entry Debit Credit View general journal
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Answer and Explanation The journal entries are shown below For the year 1 1 Accounts receivable 1348... View the full answer
Related Book For
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073212227
8th Edition
Authors: Ferdinand Beer, E. Russell Johnston, Jr., Elliot Eisenberg, William Clausen, David Mazurek, Phillip Cornwell
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