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Problem 7-2A

	2012	Account Titles	Debit	Credit
	a.
	b.
	c.
	d.
	2013
	e.
	f.
	g.
	h.

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Liang Company began operations on January 1, 2012. 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: Problem 7-2A Accounts receivable transactions and bad debts adjustments C1 P2 2012 a. Sold $1,345,434 of merchandise (that had cost $975,000) on credit, terms n/30. b. Wrote off $18,300 of uncollectible accounts receivable. c. Received $669,200 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable check d Dr Bad Debts Expense will be uncollectible. $28,169 2013 e. Sold S1,525,634 of merchandise (that had cost $1,250,000) on credit, terms n/30. f. Wrote off $27,800 of uncollectible accounts receivable. g. Received $1,204,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable (h) Dr. Bad Debts Expense will be uncollectible. $32,199 Required Prepare journal entries to record Liang's 2012 and 2013 summarized transactions and its year-end adjust- ments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable. Round amounts to the nearest dollar.)

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