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 $1,352,200 of merchandise (that had cost $976,200) on credit, terms n/30. b. Wrote off $19,300 of uncollectible accounts receivable. c. Received $671,600 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Year 2 e. Sold $1,528,900 of merchandise that had cost $1,349,000) on credit, terms 1/30, f. Wrote off $26,800 of uncollectible accounts receivable. g. Received $1,123,700 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.60% 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 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 Lang'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 General Journal Credit No 1 Transaction a(1) Accounts receivable Sales Debit 1,352,200 1,352,200 2 a(2) 976,200 Cost of good sold Merchandise inventory 976,200 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.) Credit View transaction list View journal entry worksheet No Transaction General Journal a(1) Accounts receivable Sales Debit 1,352,200 1 1,352,200 2 a(2) 976,200 Cost of good sold Merchandise inventory 976,200 3 19,300 Allowance for doubtful accounts Accounts receivable 19,300 4 671,600 Cash Accounts receivable 671,600 5 d Bad debts expense Allowance for doubtful accounts JE Year 2 > 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 $1,528,900 of merchandise on credit, terms 1/30, 2 Record cost of goods sold, $1,349,000. 3. Wrote off $26,800 of uncollectible accounts receivable. 4 Received $1,123,700 cash in payment of accounts receivable. $ In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible Credit Note : journal entry has been entered Record entry Clear entry View general Journal
