Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help with journal entry D Year 1 a. Sold $1,347,800 of merchandise on credit (that had cost $982,500), terms n/30. b. Wrote off $19,900 of
help with journal entry D
Year 1 a. Sold $1,347,800 of merchandise on credit (that had cost $982,500), terms n/30. b. Wrote off $19,900 of uncollectible accounts receivable. c. Received $675,000 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible. Year 2 e. Sold $1,540,300 of merchandise (that had cost $1,274,000) on credit, terms n/30. f. Wrote off $29,400 of uncollectible accounts receivable. g. Received $1,137,500 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.50% 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.) Note: Round your intermediate calculations to the nearest dollar. Complete this question by entering your answers in the tabs below. JE Year 1 No 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.) X Answer is not complete. Transaction a(1) Accounts receivable General Journal
a. Sold $1,347,800 of merchandise on credit (that had cost $982,500 ), terms n/30. b. Wrote off $19,900 of uncollectible accounts recelvable. c. Recelved $675,000 cash in payment of accounts recelvable. c. Received $675,000 cash in payment of accounts receivable. Year 2 e. Sold $1,540,300 of merchandise (that had cost $1,274,000 ) on credit, terms n/30. f. Wrote off $29,400 of uncollectible accounts recelvable. g. Received $1,137,500 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 1.50% 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 recelvable.) 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 recelvable.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started