Liang Company: Journal Entries for Year 1 and Year 2

Liang Company begun operations in Year 1. During its first two years, the company completed a number of transactions involving soles on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. 2 Year 1 points 3. Sold $1,354,300 of merchandise on credit (that had cost $982100), terms n/30. b. Wrote off $18,700 of uncollectible accounts receivable c. Received $672,400 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.20% of accounts receivable would be uncollectible. Year 2 e. Sold $1,520,800 of merchandise (that had cost $1,326,500) on credit, terms n/30. f. Wrote off $33,200 of uncollectible accounts receivable. g. Received $1,154,200 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.20% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liong's Year 1 and Year 2 summarized transactions and its year-end adjustments to record bed debts expense. (The company uses the perpetus inventory system, and it applies the allowance method for its accounts receivable.) (Round your Intermediate calculations to the nearest dollar.) Answer is complete and correct. Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prepare journal entries to record Liang's Year 1 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.} No Transaction General Journal Debit Credit a(1) Accounts receivable 1,354,300 Sales 1,354,300 2(2) Cost of goods sold 982, 100 Merchandise inventory 982 100 b. Allowance for doubtful accounts 18,700 Accounts receivable 18 700 C. Cash 672,400 Accounts receivable 672,400 5 d. Bad debts expense O 26,658 Allowance for doubtful accounts 26 658 JE Year 1 JE Year 2 >