Business, 13.03.2020 17:28 calebabaltimore

Liang Company began operations on January 1, 2017. 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.

2017

a. Sold $1,347,100 of merchandise (that had cost $983,600) on credit, terms n/30.

b. Wrote off $21,100 of uncollectible accounts receivable.

c. Received $667,400 cash in payment of accounts receivable.

d. In adjusting the accounts on December 31, the company estimated that 2.50% of accounts receivable will be uncollectible.

2018

e. Sold $1,501,200 of merchandise on credit (that had cost $1,291,000), terms n/30.

f. Wrote off $28,100 of uncollectible accounts receivable.

g. Received $1,282,100 cash in payment of accounts receivable.

h. In adjusting the accounts on December 31, the company estimated that 2.50% of accounts receivable will be uncollectible.

Required:

1. Prepare Journal entries to record Liang's 2017 and 2018 summarized transactions and its year-end adjustments to record bad debts expense.

2. Prepare Journal entries to record Liang's 2017 summarized transaction and its year-end adjustment to record bad debts expenses.

3. Prepare Journal entries to record Liang's 2018 summarized transactions and its year-end adjustments to record bad debts expense.

Answers: 2

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Liang Company began operations on January 1, 2017. During its first two years, the company completed...

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