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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 receivable
Liang Company 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. Sold $1,350,500 of merchandise on credit (that had cost $976,400), terms n/30. b. Wrote off $18,300 of uncollectible accounts receivable. c. Received $667,100 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 $1,507,500 of merchandise (that had cost $1,316,600) on credit, terms n/30. f. Wrote off $33,000 of uncollectible accounts receivable. g. Received $1,296,300 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 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... Journal Entry Journal Entry Year 1 Year 2 Prenare journal entries to record Liang's Year 1 summarized transactions and its vear-end adjustments to record bad debts expense
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