Liang company began operations on january 1, 2016. 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:

2016

Sold $1,353,000 of merchandise (that had cost $978,400) on credit, terms n/30. Wrote off $20,100 of uncollectible accounts receivable. Received $667,800 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 1.90% of accounts receivable will be uncollectible.

2017

Sold $1,536,200 of merchandise (that had cost $1,333,600) on credit, terms n/30. Wrote off $32,700 of uncollectible accounts receivable. Received $1,305,600 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 1.90% of accounts receivable will be uncollectible.

Required:

Prepare journal entries to record Liang's 2016 and 2017 summarized transactions and its year-end adjustments to record bad debts expense.

2016

Dr Accounts receivables 1,353,000Cr Sales revenue 1,353,000Dr Bad debt expense 20,100Cr Accounts receivable 20,100Dr Cash 667,800Cr Accounts receivable 667,800Dr Allowance for doubtful accounts 12,639Cr Accounts receivable 12,639

2017

Dr Accounts receivable 1,536,200Cr Sales revenue 1,536,200Dr Bad debt expense 32,700Cr Accounts receivable 32,700Dr Cash 1,305,600Cr Accounts receivable 1,305,600Dr Allowance for doubtful accounts 3,760Cr Accounts receivable 3,760

Answer:

the correct answer is economics is a game without winners or losers.

explanation:

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

The answer is a i think