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 $1,355,000 of merchandise (that had cost $976,100) on credit, terms n/30. b. Wrote off $18,100 of uncollectible accounts receivable. c. Received $670,500 cash In payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.20% of accounts receivable would be uncollectible. Year 2 e. Sold $1,578,500 of merchandise that had cost $1,332,300) on credit, terms n/30. f. Wrote off $31,800 of uncollectible accounts receivable. g. Received $1,175,100 cash In payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.20% of accounts receivable would be uncollectible. Required: Prepare Journal entries to record Llang'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.) Answer is not complete. 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.) No Transaction General Journal Credit Debit 1,355,000 1 a(1) Accounts receivable Sales 1,355,000 2 a(2) 976, 100 Cost of goods sold Merchandise inventory 976,100 3 b. 18,100 Allowance for doubtful accounts Accounts receivable 18,100 4 C. 670,500 Cash Accounts receivable ON 670,500 5 d. Bad debts expense 666,400 OO Allowance for doubtful accounts 666,400 Answer is not complete. 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.) No Transaction General Journal Credit Debit 1,578,500 1 e(1) Accounts receivable Sales 1,578,500 2 e(2) 1,332,300 Cost of goods sold Merchandise inventory BIO 1,332,300 3 f. lo 31,800 Allowance for doubtful accounts Accounts receivable 31,800 4 g. 1,175, 100 Cash Accounts receivable 1,175,100 5 h. Bad debts expense Allowance for doubtful accounts
