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need help finding bad depts expense in journal entry for year 1 and 2 Liang Company began operations in Year 1. During its first two
need help finding bad depts expense in journal entry for year 1 and 2
Liang Company began operations in Year 1. During its first two years, the company comploted a number of transactions involving sales on credit, accounts recelvable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,351,600 of merchandise on credit (that had cost $982,90Q, terms n/30. b. Wrote off $21,900 of uncollectible accounts recelvable. c. Recelved $665,600 cash in payment of accounts recelvable. d. In adjusting the accounts on December 31 , the company estimated that 2.90% of accounts recelvable would be uncollectible. Year 2 e. Sold $1,593,200 of merchandise (that had cost $1,276,100 ) on credit, terms n/30. f. Wrote off $25,100 of uncollectible accounts receivable. g. Received $1,274,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 2.90% 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.) Note: Round your intermediate calculations to the nearest dollar. Prepare joumal entries to record Lang's Year 1 summarized transactions and its yearend adjustments to record bad debts expense. The company uses the perpetual inventory system, and it applles the allowance method for its accounts recelvable.) Journal entry worksheet 1 2. In adjusting the accounts on December 31 , the company estimated that 2.90% of accounts receivable would be uncollectible. Note: Enter debits before credits. Prepare foumal entries to record Liang's Year 2 summarized transactions and its year-end adjustments to record bod debes expense. (The company uses the perpetual inventory system, and it applies the allowance method for its accounts recelvable.) Journal entry worksheet 1 2 4 In adjusting the accounts on December 31 , the company estimated that 2.90% of accounts receivable would be uncollectible. Note: Enter debiti before credits Step by Step Solution
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