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 $1,349,800 of merchandise (that had cost $982,500) on credit, terms n/30. b. Wrote off $19,400 of uncollectible accounts receivable. c. Received $670.900 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.80% of accounts receivable will be uncollectible. 2017 e. Sold $1,509,600 of merchandise (that had cost $1,322,000) on credit, terms 1/30 f. Wrote off $29,800 of uncollectible accounts receivable. 9. Received $1,391,700 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.80% 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.) JE 2016 JE 2017 Prepare journal entries to record Liang's 2016 summarized transactions and its year-end adjustments to record bad debts expense company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) View transaction list 1 Spd $1,349,800 of merchandise on credit, terms n/30. 2 Record cost of goods sold, $982,500. 3 Wrote off $19,400 of uncollectible accounts receivable. 4 Received $670,900 cash in payment of accounts receivable. Credit 5 In adjusting the accounts on December 31, the company estimated that 2.80% of accounts receivable will be uncollectible. Note : - journal entry has been entered Record entry Clear entry View a llow 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 1 Sold $1,509,600 of merchandise on credit, terms n/30 2 Record cost of goods sold, $1,322,000 5 Wrote off $29,800 of uncollectible accounts receivable. 4 Received $1,391,700 cash in payment of accounts receivable Credit 5 In adjusting the accounts on December 31, the company estimated that 2.80% of accounts receivable will be uncollectible Note : - Journal entry has been entered Record entry Clear entry View general journal
