Accounts receivable transactions and bad debts adjustments LO1 LO3 LO5
Liang Company began operations on January 1, 2009. 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.
2009
a. Sold $1,345,400 of merchandise 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
will be uncollectible.
Check (d) Dr. Bad Debts Expense
$28,169
2010
e. Sold $1,525,600 of merchandise 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
will be uncollectible.
(h) Dr. Bad Debts Expense
$32,198
Required
Prepare journal entries to record Liang’s 2009 and 2010 summarized transactions and its year-end adjustments
to record bad debts expense. (Round amounts to the nearest dollar.)
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.