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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

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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 collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,348,500 of merchandise (that had cost $977,500) on credit, terms n/30, b. Wrote off $20,600 of uncollectible accounts receivable, c. Received $671,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.60% of accounts receivable would be uncollectible. Year 2 e. Sold $1,580,200 of merchandise (that had cost $1,315,600) on credit, terms n/30. f. Wrote off $30,700 of uncollectible accounts receivable. g. Received $1,382,800 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.60% 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 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.) ak View transaction list nces Journal entry worksheet 3 4 1 2 5 Sold $1,580,200 of merchandise on credit, terms 1/30. Note: Enter debits before credits Journal entry worksheet 1 2 3 4 5 Record cost of goods sold, $1,315,600. Note: Enter debits before credits. General Journal Debit Credit Transaction e(2) Record entry Clear entry View general journal Journal entry worksheet 1 2 4 5 Wrote off $30,700 of uncollectible accounts receivable. Note: Enter debits before credits. Transaction General Journal Debit Credit f. Record entry Clear entry View general journa Journal entry worksheet 1 2 3 5 Received $1,382,800 cash in payment of accounts receivable. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet

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