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

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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 $1,348,400 of merchandise (that had cost $984,500) oncredit, terms n/30.
Wrote off $18,400 of uncollectible accounts receivable.
Received $670,200 cash in payment of accountsreceivable.
In adjusting the accounts on December 31, the companyestimated that 1.30% of accounts receivable will beuncollectible.

2018
Sold $1,516,800 of merchandise on credit (that had cost$1,347,100), terms n/30.
Wrote off $32,000 of uncollectible accounts receivable.
Received $1,302,100 cash in payment of accountsreceivable.
In adjusting the accounts on December 31, the companyestimated that 1.30% of accounts receivable will beuncollectible.

Required:
Prepare journal entries to record Liang’s 2017 and 2018summarized transactions and its year-end adjustments to record baddebts expense. (The company uses the perpetual inventory system andit applies the allowance method for its accounts receivable.)(Round your intermediate calculations to the nearest dollaramount.)

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Journal entries Journal entries Date Accounts title and explantion Debit Credit Date Accounts title and explantion Debit Credit 2017 Accounts receivable 1348400 2018 Accounts receivable 1516800 Sales revenue 1348400 Sales revenue 1516800 See Answer

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