Business, 03.04.2021 04:20 angelteddy033

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 $1,353,000 of merchandise (that had cost $979,100) on credit, terms n/30.
B. Wrote off $20,900 of uncollectible accounts receivable.
C. Received $669,200 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 $1,544,700 of merchandise (that had cost $1,318,300) on credit, terms n/30.
F. Wrote off $27,000 of uncollectible accounts receivable.
G. Received $1,194,200 cash in payment of accounts receivable.
H. 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 2016 and 2017 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).

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Liang Company began operations in Year 1. During its first two years, the company completed a number...

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