1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Makovka662 [10]
2 years ago
7

Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving s

ales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 Sold $1,349,100 of merchandise (that had cost $981,900) on credit, terms n/30. Wrote off $20,200 of uncollectible accounts receivable. Received $674,200 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 2.70% of accounts receivable would be uncollectible.Year 2 e. Sold $1,514,600 of merchandise (that had cost $1,299,000) on credit, terms n/30. f. Wrote off $26,700 of uncollectible accounts receivable. g. Received $1,110,700 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 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.) Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prepare journal entries to record Liang's Year 2 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.) View transaction list Journal entry worksheet 5 In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Note: Enter debits before credits. Transaction General Journal Debit Credit h. Clear entry View general journal Record entry
Business
1 answer:
horsena [70]2 years ago
8 0

Answer:

1). Account receivables A/c Dr. $1,345,000

                 To sales revenue  A/c $1,345,000

(Being the sales revenue is recorded)

Cost of good sold A/c Dr. $975,700

          To merchandise inventory A/c $975,700

(Being the cost is recorded)

2. Allowance for doubtful accounts A/c Dr. $19,400

       To accounts receivable A/c $19,400

(Being the written off is recorded)

3. Cash A/c Dr. $670,800

           To accounts receivables A/c $670,800

(Being cash received is recorded

1. .Account receivable A/c Dr. $1,529,400

                    To sales A/c $1,529,400

(Being the sales revenue is recorded)

Cost of good sold A/c Dr. $1,332,100

          To merchandise inventory A/c $1,332,100

(Being the cost of goods sold  is recorded)

2. Allowance for doubtful accounts A/c Dr. $27,000

        To Account receivable A/c $27,000

(Being the written off amount is recorded)

3. Cash A/c Dr. $1,391,600

            To account receivable A/c $1,391,600

(Being the cash received is recorded)

4. Bad-debts expense A/c Dr. $28,000

(765,600 × 1% + 20,344)

    To allowance for doubtful accounts A/c $28,000

(Being the bad debt expense is recorded)

Working note:

Ending Receivables = (654800 + 1529400 - 27,000 - 1,391,600) = $765,600

Total Receivables of 1st Year = 1,345,000 - 19,400 - 670,800 = $654,800

Before Adjustment Ending Allowance Balance = 65,4800 × 1% - 27,000

= 6,548 - 27,000

= 20,344 Debit BalanceThe journal entries are shown below:

According to the scenario, computation of the given data are as follows:-

Journal Entries for 1st year

1). Account receivables A/c Dr. $1,345,000

                 To sales revenue  A/c $1,345,000

(Being the sales revenue is recorded)

Cost of good sold A/c Dr. $975,700

          To merchandise inventory A/c $975,700

(Being the cost is recorded)

2. Allowance for doubtful accounts A/c Dr. $19,400

       To accounts receivable A/c $19,400

(Being the written off is recorded)

3. Cash A/c Dr. $670,800

           To accounts receivables A/c $670,800

(Being cash received is recorded)

4.  Bad-debts expense A/c Dr. $38,389

(1,345,000-19,400-670,800) × 2.90+ $19,400

          To allowance for doubtful accounts A/c $38,389

(Being the bad debt expense is recorded)

Journal Entries for 2nd year

1. .Account receivable A/c Dr. $1,529,400

                    To sales A/c $1,529,400

(Being the sales revenue is recorded)

Cost of good sold A/c Dr. $1,332,100

          To merchandise inventory A/c $1,332,100

(Being the cost of goods sold  is recorded)

2. Allowance for doubtful accounts A/c Dr. $27,000

        To Account receivable A/c $27,000

(Being the written off amount is recorded)

3. Cash A/c Dr. $1,391,600

            To account receivable A/c $1,391,600

(Being the cash received is recorded)

4. Bad-debts expense A/c Dr. $28,000

(765,600 × 1% + 20,344)

    To allowance for doubtful accounts A/c $28,000

(Being the bad debt expense is recorded)

Working note:

Ending Receivables = (654800 + 1529400 - 27,000 - 1,391,600) = $765,600

Total Receivables of 1st Year = 1,345,000 - 19,400 - 670,800 = $654,800

Before Adjustment Ending Allowance Balance = 65,4800 × 1% - 27,000

= 6,548 - 27,000

= 20,344 Debit Balance

Explanation:

You might be interested in
If Good C increases in price by 30% a pound, and this causes the quantity demanded for Good D to increase by 40%, what is the cr
dalvyx [7]

Answer:

1.3

Explanation:

Given:

If Good C increases in price by 30% a pound.

This causes the quantity demanded for Good D to increase by 40%.

Question asked:

What is the cross-price elasticity of the two goods ?

Solution:

We can find the cross-price elasticity of the two goods by this formula:

E_{c}  = \frac{ Percent\  change\ in \a \ quantity \ of \ good \ D}{Percent \ change\  in\ the\  price\  of \ good\  C}

E_{c}  = \frac{40}{30}= 1.3

When Good C increases in price by 30% which causes the quantity demanded for Good D to increase by 40%, then the cross-price elasticity of the  is Good C and  Good D is 1.3.

4 0
3 years ago
What global market-entry strategy did mary kay use when it entered india?
sdas [7]

The global market entry strategy that Mary Kay used when it entered India was the exporting market entry strategy. The priorities of Mary Kay when doing business was God first, family second and career third. In India however it was adapted that faith first, family second and career third.  Mary Kay does this for the purpose of the religion and for the sake of respecting those who practice their religions.


8 0
3 years ago
Read 2 more answers
A company purchased new equipment for $48,000. The company paid cash for the equipment. Other costs associated with the equipmen
brilliants [131]

Answer:

The cost recorded will be $53,400

Explanation:

In this question, we are to give the value of the amount recorded as the cost of the new equipment.

By simply doing some additions, we will be okay.

mathematically, this would be

Cost of equipment recorded = cost of equipment + transportation cost + sales tax + installation cost = 48,00 + 1,200 + 2,500 + 1,700 = $53,400

4 0
2 years ago
The leading and the lagging strands differ in that _____.
lesya692 [45]

Answer: Option (C)

Explanation:

The known key difference in between the leading and lagging strand can be described as that leading strand is referred to as DNA strand, that tends to  grows continuously during the process of DNA replication on the other hand  lagging strand is known as DNA strand, which tends to grow discontinuously by formulating the segments referred to as the Okazaki fragments.

3 0
3 years ago
Figuring out why the number and quality of job applicants is falling at IBM and figuring out what to do about
Mama L [17]

Answer:

There could be many reasons to this, there could be many possible reasons, managers need to carefully analyse what might be the cause.

Job advertisement might not be posted in the appropriate newspapers, websites and magazines. Here IBM human resource manager needs to find the most appropriate sources to put the ads.

IBM might not getting the right candidates because the current candidates might positing some negative reviews about its working conditions, here managers need to address this issue properly but figuring out the actual root cause for this problem.

IBM might not presenting the idea of diverse workforce in their recruiting advertisement, here they need to show diverse workforce in their hiring ads.

5 0
3 years ago
Other questions:
  • Suppose the spouse of the primary earner in the household is considering joining the labor force. The spouse currently cares for
    11·1 answer
  • Development associates (da) agrees to buy five acres of land from eastside properties for $15,000. eastside fails to go through
    5·1 answer
  • Taft Company had no beginning work in process inventory. Its total manufacturing costs for the year were $858,000. If cost of go
    12·1 answer
  • Marketers who design and offer new products and services to their existing customers are pursuing a _________ growth strategy.
    5·1 answer
  • In a transaction that qualifies under Section 351, Buster transfers an asset with a basis of $50,000 and a fair market value of
    12·2 answers
  • All else equal, when oil prices increase, some uneconomical sources of oil tend to become more economical, and this will _______
    11·1 answer
  • The variable overhead spending variance, the fixed overhead spending variance, and the variable overhead efficiency variance can
    11·1 answer
  • The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on
    13·1 answer
  • e exportation of large quantities of a product at a price lower than that of the same product in the home mark
    12·1 answer
  • Personal, informal exchanges of communication that customers share with one another about products, brands, and companies are be
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!