Liang Company began operations on January 1, 2017. During itsfirst two years, the company...

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Accounting

Liang Company began operations on January 1, 2017. During itsfirst two years, the company completed a number of transactionsinvolving sales on credit, accounts receivable collections, and baddebts. These transactions are summarized as follows.

2017
Sold $1,353,300 of merchandise (that had cost $977,400) oncredit, terms n/30.
Wrote off $18,200 of uncollectible accounts receivable.
Received $666,400 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimatedthat 1.70% of accounts receivable will be uncollectible.

2018
Sold $1,545,000 of merchandise on credit (that had cost$1,256,900), terms n/30.
Wrote off $26,400 of uncollectible accounts receivable.
Received $1,329,900 cash in payment of accountsreceivable.
In adjusting the accounts on December 31, the company estimatedthat 1.70% of accounts receivable will be uncollectible.

Required:
Prepare journal entries to record Liang’s 2017 and 2018 summarizedtransactions and its year-end adjustments to record bad debtsexpense. (The company uses the perpetual inventory system and itapplies the allowance method for its accounts receivable.)(Round your intermediate calculations to the nearest dollaramount.)

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Answer Journal entries to record Liangs 2017 summarized transactions are as follows Date Particular Debit Credit 2017 Account Receivable Ac Dr 1353300 To Sales Ac 1353300 To record Sold 1353300 of merchandise on credit 2017 Cost of goods sold Ac 977400 To Merchandise Inventory Ac 977400 To record Cost of goods sold 2017 Allowance for Doubtful Debt Ac Dr 18200 To Account Receivable Ac 18200 To record the write off 2017 Cash Ac Dr 666400 To Account Receivable Ac 666400 To record the collection of cash on account 2017 Bad See Answer

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In: AccountingLiang Company began operations on January 1, 2017. During itsfirst two years, the company completed...Liang Company began operations on January 1, 2017. During itsfirst two years, the company completed a number of transactionsinvolving sales on credit, accounts receivable collections, and baddebts. These transactions are summarized as follows.2017Sold $1,353,300 of merchandise (that had cost $977,400) oncredit, terms n/30.Wrote off $18,200 of uncollectible accounts receivable.Received $666,400 cash in payment of accounts receivable.In adjusting the accounts on December 31, the company estimatedthat 1.70% of accounts receivable will be uncollectible.2018Sold $1,545,000 of merchandise on credit (that had cost$1,256,900), terms n/30.Wrote off $26,400 of uncollectible accounts receivable.Received $1,329,900 cash in payment of accountsreceivable.In adjusting the accounts on December 31, the company estimatedthat 1.70% of accounts receivable will be uncollectible.Required:Prepare journal entries to record Liang’s 2017 and 2018 summarizedtransactions and its year-end adjustments to record bad debtsexpense. (The company uses the perpetual inventory system and itapplies the allowance method for its accounts receivable.)(Round your intermediate calculations to the nearest dollaramount.)