Required information

Exercise 7-1 Accounts receivable subsidiary ledger; schedule of accounts receivable LO C1

[The following information applies to the questions displayed below.] Vail Company recorded the following transactions during November.

Date			General Journal	Debit		Credit
Nov.	5		Accounts ReceivableSki Shop	4,314
			Sales			4,314
	10		Accounts ReceivableWelcome Enterprises	2,274
			Sales			2,274
	13		Accounts ReceivableZia Natara	1,333
			Sales			1,333
	21		Sales Returns and Allowances	344
			Accounts ReceivableZia Natara			344
	30		Accounts ReceivableSki Shop	4,741
			Sales			4,741

Exercise 7-1 Part 1

1. Prepare a general ledger having T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Post these entries to both the general ledger and the accounts receivable ledger.

Problem 7-4A 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

1. Sold $1,350,400 of merchandise (that had cost $983,600) on credit, terms n/30.
2. Wrote off $20,600 of uncollectible accounts receivable.
3. Received $672,500 cash in payment of accounts receivable.
4. In adjusting the accounts on December 31, the company estimated that 1.70% of accounts receivable would be uncollectible.

Year 2

5. Sold $1,507,000 of merchandise (that had cost $1,254,000) on credit, terms n/30.
6. Wrote off $30,000 of uncollectible accounts receivable.
7. Received $1,395,800 cash in payment of accounts receivable.
8. In adjusting the accounts on December 31, the company estimated that 1.70% of accounts receivable would be uncollectible.

Required: Prepare journal entries to record Liangs 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.)

• Record cost of goods sold, $1,254,000.
• Wrote off $30,000 of uncollectible accounts receivable.
• Received $1,395,800 cash in payment of accounts receivable.
• In adjusting the accounts on December 31, the company estimated that 1.70% of accounts receivable would be uncollectible.

Required information Exercise 7-1 Accounts receivable subsidiary ledger; schedule of accounts receivable LO C1 [The following information applies to the questions displayed below.] Vail Company recorded the following transactions during November. Date General Journal Nov. 5 Accounts Receivable-Ski Shop Sales Debit Credit 4,314 4,314 10 Accounts Receivable-Welcome Enterprises Sales 2,274 2,274 1,333 13 Accounts Receivable-Zia Natara Sales 1,333 344 21 Sales Returns and Allowances Accounts Receivable-Zia Natara 344 30 Accounts Receivable-ski Shop 4,741 Sales 4,741 Exercise 7-1 Part 1 1. Prepare a general ledger having T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Post these entries to both the general ledger and the accounts receivable ledger. General Ledger Accounts Receivable Sales End.Bal End.Bal 0 Accounts Receivable Subsidiary Ledger Ski Shop Sales Returns and Allowances End.Bal 0 End.Bal 0 Welcome Enterprises Zia Natara End. Bal End.Bal 0 JE Year 1 JE Year 2 Prepare journal entries to record Liang's Year 1 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.) General Journal Credit No 1 Transaction (1) Debit 1,350,400 Accounts receivable Sales 1,350,400 2 a (2) 983,600 Cost of good sold Merchandise inventory 983,600 20,600 Allowance for doubtful accounts Accounts receivable 20,600 C. 672,500 Cash Accounts receivable 672,500 11,174 Bad debts expense Allowance for doubtful accounts 11,174% JE Year 1 JE Year 2 Prepare journal entries to record Liang'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 Journal entry worksheet 1 2 3 4 5 Sold $1,507,000 of merchandise on credit, terms n/30. Note: Enter debits before credits. General Journal Debit Credit Transaction e(1) Record entry Clear entry View general journal