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 $1,352,400 of merchandise (that had cost $983,300) on credit, terms n/30. E b. Wrote off $20,600 of uncollectible accounts receivable c. Received $666,300 cash in payment of accounts receivable d. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable will be uncollectible. 2017 e. Sold $1,513,300 of merchandise (that had cost $1,326,000) on credit, terms n/30. f. Wrote off $25,100 of uncollectible accounts receivable. g. Received $1,210,900 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.50% 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. JE 2016 JE 2017 Prepare journal entries to record Liang's 2016 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) Debit 1,352,400 Accounts receivable Sales 1,352,400 2 a(2) 983,300 Cost of good sold Merchandise inventory 983,300 20.600 Allowance for doubtful accounts Accounts receivable 20,600 666,300 Cash Accounts receivable 666,300 5 d. 30,583 Bad debts expense Allowance for doubtful accounts 30,583 JE 2016 JE 2017 ) JE 2016 JE 2017 Prepare journal entries to record Liang's 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.) View transaction list View journal entry worksheet General Journal Credit No 1 Transaction e(1) Debit 1,513,300 Accounts receivable Sales 1,513,300 2 e(2) 1,326,000 Cost of good sold Merchandise inventory 1,326,000 25.100 Allowance for doubtful accounts Accounts receivable 25,100 4 . 1,210,900 Cash Accounts receivable 1,210,900 h. 39,404 Bad debts expense Allowance for doubtful accounts 39,404 JE 2016 JE 2017 >
