Liang company began operations in year 1. 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. year 1 sold $1,354,400 of merchandise (that had cost $981,000) on credit, terms n/30. wrote off $21,600 of uncollectible accounts receivable. received $668,400 cash in payment of accounts receivable. in adjusting the accounts on december 31, the company estimated that 2.60% of accounts receivable would be uncollectible. year 2 sold $1,593,400 of merchandise (that had cost $1,271,600) on credit, terms n/30. wrote off $33,900 of uncollectible accounts receivable. received $1,386,400 cash in payment of accounts receivable. 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.)

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

answer; trojan horse;