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 $1,353,500 of merchandise on credit (that had cost $979,500), terms n/30. b. Wrote off $18,100 of uncollectible accounts receivable. c. Received $671,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable would be uncollectible. Year 2 e. Sold $1,556,800 of merchandise (that had cost $1,295,500) on credit, terms n/30. f. Wrote off $26,000 of uncollectible accounts receivable. g. Received $1,394,400 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 3.00% 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. 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 1 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 4 5 Sold $1,353,500 of merchandise on credit, terms n/30. Note: Enter debits before credits. Transaction a(1) General Journal Debit Credit Record entry Clear entry View general journal >
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 $1,353,500 of merchandise on credit (that had cost $979,500), terms n/30. b. Wrote off $18,100 of uncollectible accounts receivable. c. Received $671,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable would be uncollectible. Year 2 e. Sold $1,556,800 of merchandise (that had cost $1,295,500) on credit, terms n/30. f. Wrote off $26,000 of uncollectible accounts receivable. g. Received $1,394,400 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 3.00% 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. 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 1 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 4 5 Sold $1,353,500 of merchandise on credit, terms n/30. Note: Enter debits before credits. Transaction a(1) General Journal Debit Credit Record entry Clear entry View general journal >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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 $1,353,500 of merchandise on credit (that had cost $979,500), terms n/30.
b. Wrote off $18,100 of uncollectible accounts receivable.
c. Received $671,300 cash in payment of accounts receivable.
d. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable would be uncollectible.
Year 2
e. Sold $1,556,800 of merchandise (that had cost $1,295,500) on credit, terms n/30.
f. Wrote off $26,000 of uncollectible accounts receivable.
g. Received $1,394,400 cash in payment of accounts receivable.
h. In adjusting the accounts on December 31, the company estimated that 3.00% 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.
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 1 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 4 5
Sold $1,353,500 of merchandise on credit, terms n/30.
Note: Enter debits before credits.
Transaction
a(1)
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
>
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