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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 $1,352,400 of merchandise on credit (that had cost $978,500), terms n/30. b. Wrote off $21,200 of uncollectible accounts receivable. c. Received $671,800 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable would be uncollectible. Year 2 e. Sold $1,570,300 of merchandise (that had cost $1,293,8O00) on credit, terms n/30. f. Wrote off $32,800 of uncollectible accounts receivable. g. Received $1,273,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.40% 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.)

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 $1,352,400 of merchandise on credit (that had cost $978,500), terms n/30. b. Wrote off $21,200 of uncollectible accounts receivable. c. Received $671,800 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable would be uncollectible. Year 2 e. Sold $1,570,300 of merchandise (that had cost $1,293,8O00) on credit, terms n/30. f. Wrote off $32,800 of uncollectible accounts receivable. g. Received $1,273,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.40% 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.)

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterB: Bad Debts
Section: Chapter Questions
Problem 2P: Hardys Landscape Services total revenue on account for 2018 amounted to 273,205. The company, which...
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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.) No Transaction General Journal Debit Credit e(1) Accounts receivable 1,570,300 1 1,570,300 Sales 1,293,800 e(2) Cost of goods sold 1,293,800 Merchandise inventory 32,800 3 f. Allowance for doubtful accounts 32,800 Accounts receivable 1,273,000 4 9. Cash 1,273,000 Accounts receivable 15,762 8 5. h. Bad debts expense 15,763 Allowance for doubtful accounts Prev 1 of 1 Next ... OCT
Transcribed Image Text: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.) No Transaction General Journal Debit Credit e(1) Accounts receivable 1,570,300 1 1,570,300 Sales 1,293,800 e(2) Cost of goods sold 1,293,800 Merchandise inventory 32,800 3 f. Allowance for doubtful accounts 32,800 Accounts receivable 1,273,000 4 9. Cash 1,273,000 Accounts receivable 15,762 8 5. h. Bad debts expense 15,763 Allowance for doubtful accounts Prev 1 of 1 Next ... OCT
omat ior CisCo webeX Mee. niips://www.disco. UH Core Curriculu. 2018-2019-Catalo. TCCN---Bu Saved Help Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not indicate comp 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 $1,352,400 of merchandise on credit (that had cost $978,500), terms n/30. b. Wrote off $21,200 of uncollectible accounts receivable. c. Received $671,800 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1,40% of accounts recelvable would be uncollectible. Year 2 e. Sold $1,570,300 of merchandise (that had cost $1,293,8O00) on credit, terms n/30. f. Wrote off $32,800 of uncollectible accounts receivable. g. Received $1,273,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.40% 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.) < Prev 1 of 1 Next
Transcribed Image Text:omat ior CisCo webeX Mee. niips://www.disco. UH Core Curriculu. 2018-2019-Catalo. TCCN---Bu Saved Help Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not indicate comp 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 $1,352,400 of merchandise on credit (that had cost $978,500), terms n/30. b. Wrote off $21,200 of uncollectible accounts receivable. c. Received $671,800 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1,40% of accounts recelvable would be uncollectible. Year 2 e. Sold $1,570,300 of merchandise (that had cost $1,293,8O00) on credit, terms n/30. f. Wrote off $32,800 of uncollectible accounts receivable. g. Received $1,273,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.40% 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.) < Prev 1 of 1 Next
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