Year 1 a. Sold $1,350,000 of merchandise on credit (that had cost $982,900), terms n/30. b. Wrote off $19,400 of uncollectible accounts receivable. c. Received $666,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable would be uncollectible. Year 2 e. Sold $1,515,900 of merchandise (that had cost $1,327,300) on credit, terms n/30. f. Wrote off $28,400 of uncollectible accounts receivable. g. Received $1,175,200 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.20% 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.

Year 1 a. Sold $1,350,000 of merchandise on credit (that had cost $982,900), terms n/30. b. Wrote off $19,400 of uncollectible accounts receivable. c. Received $666,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable would be uncollectible. Year 2 e. Sold $1,515,900 of merchandise (that had cost $1,327,300) on credit, terms n/30. f. Wrote off $28,400 of uncollectible accounts receivable. g. Received $1,175,200 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.20% 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.

Name: 7 Problem 9-4A (Algo) Accounts receivable transactions and bad debts a
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Description: 7 Problem 9-4A (Algo) Accounts receivable transactions and bad debts adjustments LO C1, P2, P3Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving saleson credit, accounts rece

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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