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 $1,354,700 of merchandise on credit (that had cost $982,200), terms n/30. b. Wrote off $20,900 of uncollectible accounts receivable. c. Received $671,800 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.40% of accounts receivable would be uncollectible. Year 2 e. Sold $1,522,300 of merchandise (that had cost $1,280,700) on credit, terms n/30. f. Wrote off $26,500 of uncollectible accounts receivable. g. Received $1,292,300 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.40% 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 is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Journal Entry Journal Entry Year 1 Year 2 Prepare journal entries to record Liang's 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.) No Transaction General Journal Debit Credit
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 $1,354,700 of merchandise on credit (that had cost $982,200), terms n/30. b. Wrote off $20,900 of uncollectible accounts receivable. c. Received $671,800 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.40% of accounts receivable would be uncollectible. Year 2 e. Sold $1,522,300 of merchandise (that had cost $1,280,700) on credit, terms n/30. f. Wrote off $26,500 of uncollectible accounts receivable. g. Received $1,292,300 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.40% 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 is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Journal Entry Journal Entry Year 1 Year 2 Prepare journal entries to record Liang's 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.) No Transaction General Journal Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $1,354,700 of merchandise on credit (that had cost $982,200), terms n/30.
b. Wrote off $20,900 of uncollectible accounts receivable.
c. Received $671,800 cash in payment of accounts receivable.
d. In adjusting the accounts on December 31, the company estimated that 2.40% of accounts receivable would be uncollectible.
Year 2
e. Sold $1,522,300 of merchandise (that had cost $1,280,700) on credit, terms n/30.
f. Wrote off $26,500 of uncollectible accounts receivable.
g. Received $1,292,300 cash in payment of accounts receivable.
h. In adjusting the accounts on December 31, the company estimated that 2.40% 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 is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Journal Entry Journal Entry
Year 1
Year 2
Prepare journal entries to record Liang's 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.)
No
Transaction
General Journal
Debit
Credit
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