Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with letter d and h Problem 7-4A (Algo) Accounts receivable transactions and bad debts adjustments LO C1, P2, P3 Liang Company began operations

please help with letter d and h
image text in transcribed
Problem 7-4A (Algo) Accounts receivable transactions and bad debts adjustments LO C1, P2, P3 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 $1,351,000 of merchandise (that had cost $983,100) on credit, terms n/30. b. Wrote off $19,400 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 1.30% of accounts receivable would be uncollectible Year 2 5 e. Sold $1583,500 of merchandise (that had cost $1,284,100) on credit, terms n/30 1. Wrote off $29,100 of uncollectible accounts receivable. g. Received $1,190,700 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.30% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Llang'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.) (Round your intermediate calculations to the nearest dollar) Complete this question by entering your answers in the tabs below. Je Year 1 De Year 2 Prepare journal entries to record Lang's 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.) View transaction list View Journal entry worksheet No Transaction General Journal Credit Debit On .:/

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Financial Management An Applied Approach

Authors: Jeffrey R. Cornwall, David O. Vang, Jean M. Hartman

4th Edition

0765646854, 978-0765646859

More Books

Students also viewed these Accounting questions

Question

What is the decision facing The Filter?

Answered: 1 week ago

Question

LO2 Describe the human resource planning process.

Answered: 1 week ago