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Need help with these problems, thank you! Liang Company began operations in Year 1. During its first two years, the company completed a number of
Need help with these problems, thank you!
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 $1,352,800 of merchandise on credit (that had cost $979,200 ), terms n/30. b. Wrote off $21,800 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 1.60% of accounts receivable would be uncollectible. Year 2 e. Sold $1,528,100 of merchandise (that had cost $1,322,100 ) on credit, terms n/30. f. Wrote off $26,500 of uncollectible accounts receivable. g. Received $1,351,300 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 1.60% 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.) On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Problem 7-3A (Algo) Part 1 Required: I. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Note: Enter "Percent uncollectible" answers as percent rounded to 2 decimal placesStep by Step Solution
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