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Liang Company began operations in Year 1 . During its first two years, the company completed a number of transactions involving sales on credit, accounts
Liang Company began operations in Year 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
Sold $ of merchandise on credit that had cost $ terms n
Wrote off $ of uncollectible accounts receivable.
Received $ cash in payment of accounts receivable.
In adjusting the accounts on December the company estimated that of accounts receivable would be uncollectible.
Year
Sold $ of merchandise on credit that had cost $ terms n
Wrote off $ of uncollectible accounts receivable.
Received $ cash in payment of accounts receivable.
In adjusting the accounts on December the company estimated that of accounts receivable would be uncollectible.
Required:
Prepare journal entries to record Liangs Year and Year summarized transactions and its yearend 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.
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