Liang Company began operations on January 1, 2007. 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.

2007

a. Sold $1,345,400 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.

2008

e. Sold $1,525,600 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 2007 and 2008 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system. Round amounts to the nearest dollar.)