Liang Company began operations on January 1, 2016. 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 2016 a. Sold $1,345,200 of merchandise (that had cost $982,800) on credit, terms n/30 b. Wrote off $21,600 of uncollectible accounts receivable c. Received $667,600 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 210% of accounts receivable will be uncollectible. 2017 e. Sold $1,588,500 of merchandise (that had cost $1,330,400) on credit, terms n/30 g. Received $1,186,000 cash in payment of accounts receivable. f. Wrote off $33,000 of uncollectible accounts receivable h. In adjusting the accounts on December 31, the company estimated that 210% of accounts receivable will be uncollectible. Required Prepare journal entries to record Liang's 2016 and 2017 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 amount.) Complete this question by entering your answers in the tabs below Journal entry worksheet 4 Sold $1,345,200 of merchandise on credit, terms n/30. Note: Enter debits before credits Debit Transaction General Journal Credit Clear entry Record entry View general journal Journal entry worksheet 4 Record cost of goods sold, $982,800. Note: Enter debits before credits Transaction a(2) General Journal Debit Credit Clear entry Record entry View general journal Journal entry worksheet 4 Wrote off $21,600 of uncollectible accounts receivable. Note: Enter debits before credits. Debit Transaction General Journal Credit b. Record entry Clear entry View general journal Journal entry worksheet 4 Received $667,600 cash in payment of accounts receivable. Note: Enter debits before credits. Transaction General Journal Debit Credit C. View general journal Record entry Clear entry Journal entry worksheet 4 In adjusting the accounts on December 31, the company estimated that 2.10% of accounts receivable will be uncollectible. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 4 Sold $1,588,500 of merchandise on credit, terms n/30. Note: Enter debits before credits. Credit Transaction General Journal Debit Record entry Clear entry View general journal Journal entry worksheet 4 Record cost of goods sold, $1,330,400. Note: Enter debits before credits. Transaction General Journal Debit Credit e(2) View general journal Record entry Clear entry Journal entry worksheet 4 Wrote off $33,000 of uncollectible accounts receivable. Note: Enter debits before credits Transaction General Journal Debit Credit Clear entry View general journal Record entry Journal entry worksheet 2 4 In adjusting the accounts on December 31, the company estimated that 2.10% of accounts receivable will be uncollectible. Note: Enter debits before credits. Debit Transaction General Journal Credit h. Record entry Clear entry View general journal
