Answered step by step
Verified Expert Solution
Question
1 Approved Answer
This is one question btw haha! Thanks in advance! Problem 7-4A (Algo) Accounts receivable transactions and bad debts adjustments LO C1, P2, P3 Liang Company
This is one question btw haha! Thanks in advance!
Problem 7-4A (Algo) Accounts receivable transactions and bad debts adjustments LO C1, P2, P3 Liang Company began operations in Your During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. Those transactions are summarized as follows Year 1 a. Sold $1,354,900 of merchandise on credit (that had cost $975,600), torms n30. b. Wrote off $22.000 of uncollectible accounts receivable. c. Received $669.900 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.90% of accounts receivable would be uncollectible. Year 2 e. Sold $1.594,400 of merchandise (that had cost $1301600) on credit, torms (30. f. Wrote off $29,400 of uncollectible accounts receivable. g. Recelved $1.290,700 cash in payment of accounts recevable. n. In adjusting the accounts on December 31, the company estimated that 1.90% 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: (Round your intermediate calculations to the nearest dollar) 10 points Yew BEY Prepare journal entries to record Lung's Year 1 surmarired transactions and its year and adjustments to record bad debts ne (The company uses the perpetual inventory system and it applies the allowance method for its accounts recevable) book View transactions AR Journal entry worksheet In adjusting the accounts on December 31, the company estimated that 1.90% of accounts receivable would be uncollectible. Note: Enter debits before credits Transaction General Journal Debit Credit h Chartry Record entry Vlow general Journal Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started