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 $1,347,600 of merchandise on credit (that had cost $979,500), terms n/30. b. Wrote off $20,200 of uncollectible accounts receivable. c. Received $672,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.30% of accounts receivable would be uncollectible. Year 2 e. Sold $1,556,200 of merchandise (that had cost $1,326,500) on credit, terms n/30. f. Wrote off $34,200 of uncollectible accounts receivable. g. Received $1,119,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.30% 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.) (Round your intermediate calculations to the nearest dollar.) Complete this question by entering your answers in the tabs below. JE Year 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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a(1) Accounts receivable 1,347,600 Sales 1,347,600 2 a(2) 979,500 Cost of goods sold Merchandise inventory 979,500 3 b. 20,200 Allowance for doubtful accounts Accounts receivable 20.200 C. Cash 672,300 Accounts receivable 672,300 5 d. Bad debts expense Allowance for doubtful accounts 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 $1,347,600 of merchandise on credit (that had cost $979,500), terms n/30. b. Wrote off $20,200 of uncollectible accounts receivable. c. Received $672,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.30% of accounts receivable would be uncollectible. Year 2 e. Sold $1,556,200 of merchandise (that had cost $1,326,500) on credit, terms n/30. f. Wrote off $34,200 of uncollectible accounts receivable. g. Received $1,119,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.30% 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.) (Round your intermediate calculations to the nearest dollar.) Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prepare journal entries to record Liang's 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.) View transaction list X 1 Sold $1,556,200 of merchandise on credit, terms n/30. > 2 Record cost of goods sold, $1,326,500. 3 Wrote off $34,200 of uncollectible accounts receivable. 4 Received $1,119,000 cash in payment of accounts receivable. Credit 5 In adjusting the accounts on December 31, the company estimated that 1.30% of accounts receivable would be uncollectible. Note = journal entry has been entered Record entry Clear entry View general journal
