Prepare general journal entries for the following transactions of Viking Company, assuming they use
the allowance method to account for uncollectible accounts. (15 points)
Apr 1 Sold $2,500 of merchandise to Arthur Co., receiving an 8%, 90-day,

$2,500 note.
15 Wrote off $1,500 owed by Network Co.
30 Received a $6,000, 5%, 30-day note receivable from Calvin Co. as
exchange for its $6,000 account receivable.

May 30 The note received from Calvin on April 30 was collected in full.
June 30 Arthur Co. Was unable to pay the note on the due date.
July 15 Network Co. paid $1,000 of the amount written off on April 15.

 

. A- The Connecting Company uses the percent of sales method ofaccounting for uncollectible accounts receivable. During thecurrent year, the following transactions occurred:

1. Prepare the general journal entries to record thesetransactions.
If the balance of the allowance for uncollectible accounts was an$8,000 credit on January 1 of the current year, determine thebalance of the allowance for doubtful accounts at December 31 ofthe current year. Assume that the transactions above are the onlytransactions affecting the allowance for doubtful accounts duringthe year.

Journalize the above transactions in the accounts of DiningInteriors Company, a restaurant supply company that uses theallowance method of accounting for uncollectible receivables. Referto the Chart of Accounts for exact wording of account titles.

Problem 9-4A Accounts receivable transactions and bad debts adjustments LO C1, P2, P3

Liang Company began operations on January 1, 2016. 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.

2016

a. Sold $1,353,200 of merchandise (that had cost $981,700) on credit, terms n/30.

b. Wrote off $20,600 of uncollectible accounts receivable.

c. Received $667,000 cash in payment of accounts receivable.

d. In adjusting the accounts on December 31, the company estimated that 1.00% of accounts receivable will be uncollectible.

2017

e. Sold $1,522,600 of merchandise (that had cost $1,253,000) on credit, terms n/30.

f. Wrote off $34,300 of uncollectible accounts receivable.

g. Received $1,256,900 cash in payment of accounts receivable.

h. In adjusting the accounts on December 31, the company estimated that 1.00% of accounts receivable will be uncollectible.

Required:
Prepare journal entries to record Liang’s 2016 and 2017 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.)