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

1. Sold $1,354,900 of merchandise (that had cost $982,100) on credit, terms n/30.
2. Wrote off $20,300 of uncollectible accounts receivable.
3. Received $670,200 cash in payment of accounts receivable.
4. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible.

Year 2

5. Sold $1,584,300 of merchandise (that had cost $1,326,000) on credit, terms n/30.
6. Wrote off $30,300 of uncollectible accounts receivable.
7. Received $1,203,400 cash in payment of accounts receivable.
8. 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 Liangs 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.)

2) a(2) Record cost of goods sold, $982,100.

3) b) Wrote off $20,300 of uncollectible accounts receivable.

4) c) Received $670,200 cash in payment of accounts receivable.

5) d) Received $670,200 cash in payment of accounts receivable.

2) (e 2) Record cost of goods sold, $1,326,000.

3) f) Wrote off $30,300 of uncollectible accounts receivable.

4) g) Received $1,203,400 cash in payment of accounts receivable.

5) h) In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible.

Options for General journal for both table

• Accounts payable
• Accounts receivable
• Allowance for doubtful accounts
• Bad debts expense
• Cash
• Cost of good sold
• Credit card expense
• Factoring fee expense
• Interest receivable
• Interest revenue
• Merchandise inventory
• Notes payable
• Sales
• Sales discounts

Journal entry worksheet 2 3 4 5 Sold $1,354,900 of merchandise on credit, terms n/30. Note: Enter debits before credits. Transaction General Journal Debit Credit a(1) Journal entry worksheet 2 3 4 5 Sold $1,584,300 of merchandise on credit, terms n/30. Note: Enter debits before credits. Transaction General Journal Debit Credit e(1)