Book rint rences Liang Company began operations in Year 1 During its first two years the company completed a number of

Question

Book rint rences 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 1 351 100 of merchandise on credit that had cost 977 500 terms n 30 b Wrote off 22 000 of uncollectible accounts receivable c Received 670 400 cash in payment of accounts receivable d In adjusting the accounts on December 31 the company estimated that 1 80 of accounts receivable would be uncollectible Year 2 e Sold 1 534 700 of merchandise that had cost 1 297 100 on credit terms n 30 f Wrote off 32 100 of uncollectible accounts receivable g Received 1 281 600 cash in payment of accounts receivable h In adjusting the accounts on December 31 the company estimated that 1 80 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 Note Round your intermediate calculations to the nearest dollar Complete this question by entering your answers in the tabs below Check my work Journal Entry Journal Entry Year 1 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

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