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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 $1,353,400 of merchandise on credit (that had cost $978,500), terms n/30. b. Wrote off $18,600 of uncollectible accounts receivable. c. Received $672,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Year 2 e. Sold $1,526,200 of merchandise (that had cost $1,272,100) on credit, terms n/30. f. Wrote off $33,900 of uncollectible accounts receivable. g. Received $1,330,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.60% 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.) (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 $1,353,400 of merchandise on credit (that had cost $978,500), terms n/30. b. Wrote off $18,600 of uncollectible accounts receivable. c. Received $672,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Year 2 e. Sold $1,526,200 of merchandise (that had cost $1,272,100) on credit, terms n/30. f. Wrote off $33,900 of uncollectible accounts receivable. g. Received $1,330,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.60% 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.) (Round your intermediate calculations to the nearest dollar.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $1,353,400 of merchandise on credit (that had cost $978,500), terms n/30. b. Wrote off $18,600 of uncollectible accounts receivable. c. Received $672,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Year 2 e. Sold $1,526,200 of merchandise (that had cost $1,272,100) on credit, terms n/30. f. Wrote off $33,900 of uncollectible accounts receivable. g. Received $1,330,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 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.) immarized transactions and its year-end adjustments to record bad debts Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prenare journal entries to record Liang's Year 1 summarized transactions and its year-end adjustments to record bad debts expense. Lit nnnlior the allowance method for its accounts receivable.)
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 $1,353,400 of merchandise on credit (that had cost $978,500), terms n/30. b. Wrote off $18,600 of uncollectible accounts receivable. c. Received $672,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Year 2 e. Sold $1,526,200 of merchandise (that had cost $1,272,100) on credit, terms n/30. f. Wrote off $33,900 of uncollectible accounts receivable. g. Received $1,330,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 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.) immarized transactions and its year-end adjustments to record bad debts Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prenare journal entries to record Liang's Year 1 summarized transactions and its year-end adjustments to record bad debts expense. Lit nnnlior the allowance method for its accounts receivable.)
Complete this question by entering your answers in the tabs below. JE Year 1 JE 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 3 4 Sold $1,353,400 of merchandise on credit, terms n/30. Note: Enter debits before credits. Transaction General Journal Debit Credit a(1) Clear entry View general journal Record entry Noxt
Transcribed Image Text:Complete this question by entering your answers in the tabs below. JE Year 1 JE 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 3 4 Sold $1,353,400 of merchandise on credit, terms n/30. Note: Enter debits before credits. Transaction General Journal Debit Credit a(1) Clear entry View general journal Record entry Noxt
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