Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

bany began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections,

image text in transcribed
bany 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 a. Sold $1,345,434 of merchandise on credit (that had cost $975,000), terms n/30 b. Wrote off $18,300 of uncollectible accounts receivable c. Received $669,200 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 15% of accounts receivable would be uncollectible Year 2 e. Sold $1.525,634 of merchandise on credit (that had cost $1,250.000), terms n/30 f. Wrote off $27800 of uncollectible accounts receivable. g. Received $1.204,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 15% 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. 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 5 Sold $1,345,434 of merchandise on credit, terms n/30 Dr 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management Accounting Budgeting Tracking And Reporting Costs And Profitability

Authors: Kevin R. Callahan, Gary S. Stetz, Lynn M. Brooks

1st Edition

0470044691, 978-0470044698

More Books

Students also viewed these Accounting questions

Question

6 What is the balanced scorecard method?

Answered: 1 week ago