year one

year 2

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 $1,348,200 of merchandise (that had cost $982700) on credit, terms n/30. b. Wrote off $19,100 of uncollectible accounts receivable. c. Received $671,900 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 130% of accounts receivable would be uncollectible. Year 2 e. Sold $1,528,300 of merchandise (that had cost $1,308,300) on credit, terms n/30 f. Wrote off $27,500 of uncollectible accounts receivable. g. Received $1,384,200 cash in payment of accounts receivable, h. In adjusting the accounts on December 31, the company estimated that 130% 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) (Round your intermediate calculations to the nearest dollar) 1 1 Sold $1,348,200 of merchandise on credit, terms n/30. 2 Record cost of goods sold, $982,700. 3 Wrote off $19,100 of uncollectible accounts receivable. 4 Received $671,900 cash in payment of accounts receivable. 5 In adjusting the accounts on December 31, the company estimated that 1.30% of accounts receivable would be uncollectible. 1 1 Sold $1,528,300 of merchandise on credit, terms n/30. N Record cost of goods sold, $1,308,300. 3 Wrote off $27,500 of uncollectible accounts receivable. 4 Received $1,384,200 cash in payment of accounts receivable. 5 In adjusting the accounts on December 31, the company estimated that 1.30% of accounts receivable would be uncollectible

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 $1,348,200 of merchandise (that had cost $982,700) on credit, terms n/30. b. Wrote off $19,100 of uncollectible accounts receivable. c. Received $671,900 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 e. Sold $1,528,300 of merchandise (that had cost $1,308,300) on credit, terms n/30. f. Wrote off $27,500 of uncollectible accounts receivable. g. Received $1,384,200 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 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.) (Round. your intermediate calculations to the nearest dollar.)