Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $1,351,300 of merchandise (that had cost $984,200) on credit, terms 1/30. b. Wrote off $21,700 of uncollectible accounts receivable. c. Received $665,000 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible. Year 2 e. Sold $1,529,500 of merchandise (that had cost $1,309,400) on credit, terms 1/30 f. Wrote off $29.200 of uncollectible accounts receivable. g. Received $1,271,400 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 150% 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.) JE Year 1 JE Year 2 Prepare journal entries to record Liang's Year 1 summarized transactions and its year-end adjustments to record (The company uses the perpetual inventory system and it applies the allowance method for its accounts receiva View transaction list Journal entry worksheet Sold $1,529,500 of merchandise on credit, terms n/30. Note: Enter debits before credits. General Journal Debit Credit Transaction e(1) Journal entry worksheet Wrote off $29,200 of uncollectible accounts receivable. Note: Enter debits before credits. Transaction General Journal Debit Credit f. Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Data And Analytics In Accounting An Integrated Approach

Authors: Guido Geerts, Ann C. Dzuranin, Margarita Lenk

1st Edition

1119722993, 978-1119722991

More Books

Students also viewed these Accounting questions

Question

2 What are the steps that can aid effective communication?

Answered: 1 week ago