Liang Company began operations in Year 1. During its first two years, the company completed...
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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 $1,345,434 of merchandise (that had cost $975,000 ) on credit, terms n/30. b. Wrote off $18,300 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 1.5% of accounts receivable would be uncollectible. Yeor 2 e. Sold $1,525,634 of merchandise on credit (that had cost $1,250,000 ), terms n/30, f. Wrote off $27,800 of uncollectible accounts receivable. 9. Received $1,204,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 1.5% of accounts receivable would be uncollectible. Required Prepare journal entries to record Liang's 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 to the nearest dollar.)
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