Liang Company began operations in Year 1. During its first two years, the company completed a...

 

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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 $1,345,500 of merchandise on credit (that had cost $976,600), terms n/30. b. Wrote off $19,200 of uncollectible accounts receivable. c. Received $668,800 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.00% of accounts receivable would be uncollectible. Year 2 e. Sold $1,554,800 of merchandise (that had cost $1,266,700) on credit, terms n/30. f. Wrote off $33,500 of uncollectible accounts receivable. g. Received $1,328,400 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.00% 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 $1,345,500 of merchandise on credit (that had cost $976,600), terms n/30. b. Wrote off $19,200 of uncollectible accounts receivable. c. Received $668,800 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.00% of accounts receivable would be uncollectible. Year 2 e. Sold $1,554,800 of merchandise (that had cost $1,266,700) on credit, terms n/30. f. Wrote off $33,500 of uncollectible accounts receivable. g. Received $1,328,400 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.00% 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.

Answer rating: 100% (QA)

Journal entries for Liang Company Year 1 a Sold 1345500 of merchandise on credit that had cost 97660... View the full answer