Accounts receivable 7
Liang Company began operations in Year 1 . During its first two years, the company completed a number of transactions involving sales on credit, accounts recelvable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,350,200 of merchandise on credit (that had cost $981,200 ), terms n/30. b. Wrote off $19,800 of uncollectible accounts receivable. c. Recelved $670,800 cash in payment of accounts recelvable. d. In adjusting the accounts on December 31 , the company estimated that 2.50% of accounts receivable would be uncollectible. Year 2 e. Sold $1,557,100 of merchandise (that had cost $1,301,000 ) on credit, terms n/30. f. Wrote off $30,900 of uncollectible accounts receivable. g. Received $1,210,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 2.50% 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.) Complete this question by entering your answers in the tabs below. 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.) Journal entry worksheet 2345 Sold $1,350,200 of merchandise on credit, terms n/30. Noten Enter debits before credits. Journal entry worksheet Record cost of goods sold, $981,200. Note: Enter debits before credits. Journal entry worksheet Wrote off $19,800 of uncollectible accounts receivable. Note: Enter debits before credits. Journal entry worksheet $670,800 cash in payment of accounts receivable. Note: Enter debits before credits. Journal entry worksheet 12 In adjusting the accounts on December 31 , the company estimated that 2.50% of accounts receivable would be uncollectible. Note: Enter debits before credits. 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.) Journal entry worksheet 2345 Sold $1,557,100 of merchandise on credit, terms n/30. Note: Enter debits before credits. Journal entry worksheet 5 Note: Enter debits before credits. Journal entry worksheet Wrote off $30,900 of uncollectible accounts receivable. Note: Enter debits before credits. Journal entry worksheet
