Question:
Liang Company began operations on January 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:
:
a Sold $ of merchandise that had cost $ on credit, terms n
b Wrote off $ of uncollectible accounts receivable.
c Received $ cash in payment of accounts receivable.
d In adjusting the accounts on December the company estimated that of accounts
receivable will be uncollectible.
:
e Sold $ of merchandise that had cost $ on credit, terms
f Wrote off $ of uncollectible accounts receivable.
g Received $ cash in payment of accounts receivable.
h In adjusting the accounts on December the company estimated that of accounts
receivable will be uncollectible.
Required:
Prepare journal entries to record Liang's and summarized transactions and its
yearend adjustments to record bad debts expenses. The company uses the perpetual
inventory system and it applies the allowance method for its accounts receivable
