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07.06.2021 •
Business
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:
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 will be uncollectible.
2013
e.Sold $1,525,634 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 will be uncollectible.
Required:
Prepare journal entries to record Liang’s 2012 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.) (Round your intermediate calculations to the nearest dollar amount.)
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Ответ:
Liang Company
Journal Entries:
2012
a. Debit Accounts receivable $1,345,434
Credit Sales revenue $1,345,434
To record the sale of goods on credit, terms n/30.
Debit Cost of goods sold $975,000
Credit Inventory $975,000
To record the cost of goods sold.
b. Debit Allowance for Uncollectible accounts $18,300
Credit Accounts receivable $18,300
To write-off uncollectible accounts.
c. Debit Cash $669,200
Credit Accounts receivable $669,200
To record cash received on account.
d. Debit Bad Debts Expense $28,169
Credit Allowance for Uncollectible accounts $28,169
To record bad debts expense and maintain a balance of $9,869 being 1.5% of accounts receivable as uncollectible.
2013
e. Debit Accounts receivable $1,525,634
Credit Sales revenue $1,525,634
To record the sale of goods on credit, terms n/30.
Debit Cost of goods sold $1,250,000
Credit Inventory $1,250,000
To record the cost of goods sold.
f. Debit Allowance for Uncollectible accounts $27,800
Credit Accounts receivable $27,800
To write-off uncollectible accounts.
g. Debit Cash $1,204,600
Credit Accounts receivable $1,204,600
To record the receipt of cash on account.
h. Debit Bad Debts Expense $32,199
Credit Allowance for Uncollectible accounts $32,199
To record bad debts expense and maintain a balance of $14,268 being 1.5% of accounts receivable as uncollectible.
Explanation:
a) Data and Analysis:
2012
a. Accounts receivable $1,345,434 Sales revenue $1,345,434
Cost of goods sold $975,000 Inventory $975,000, terms n/30.
b. Allowance for Uncollectible accounts $18,300 Accounts receivable $18,300
c. Cash $669,200 Accounts receivable $669,200
d. Bad Debts Expense $28,169 Allowance for Uncollectible accounts $28,169 balance of $9,869 being 1.5% of accounts receivable will be uncollectible.
2013
e. Accounts receivable $1,525,634 Sales revenue $1,525,634
Cost of goods sold $1,250,000 Inventory $1,250,000 credit, terms n/30.
f. Allowance for Uncollectible accounts $27,800 Accounts receivable $27,800
g. Cash $1,204,600 Accounts receivable $1,204,600
h. Bad Debts Expense $32,199 Allowance for Uncollectible accounts $32,199 balance of $14,268 being 1.5% of accounts receivable will be uncollectible
T-accounts:
Accounts Receivable
Account Titles Debit Credit
2012
Sales revenue $1,345,434
Allowance for Uncollectible accounts $18,300
Cash 669,200
Balance 657,934
2013
Balance $657,934
Sales revenue 1,525,634
Allowance for Uncollectible accounts $27,800
Cash 1,204,600
Balance 951,168
Allowance for Uncollectible accounts
Account Titles Debit Credit
2012
Accounts receivable $18,300
Bad Debts Expense $28,169
Balance 9,869
2013
Balance $9,869
Accounts receivable $27,800
Bad Debts Expense 32,199
Balance $14,268
Ответ:
answer:
explanation:
nice