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Having trouble with Part D and Part H. Liang Company began operations in Year 1. During its first two years, the company completed a number
Having trouble with Part D and Part H.
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving s on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,346,800 of merchandise on credit (that had cost $977,900 ), terms n/30. b. Wrote off $20,900 of uncollectible accounts receivable. c. Received $674,700 cash in payment of accounts receivable. d. In adjusting the accounts on December 31 , the company estimated that 2.00% of accounts receivable would be uncollectible. Year 2 e. Sold $1,542,700 of merchandise (that had cost $1,270,900 ) on credit, terms n/30. f. Wrote off $29,400 of uncollectible accounts receivable. g. Received $1,160,700 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 2.00% 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 de 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. Answer is not complete. 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.) Complete this question by entering your answers in the tabs below. Prepare journal entries to record Liang's Year 2 summarized transactions and its year-end adjustments to record bad debt: expense. (The company uses the perpetual inventory system, and it applies the allowance method for its accounts receivable.)Step by Step Solution
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