7-4A (Algo) Accounts receivable transactions and bad debts adjustments LO C1, P2, P3 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 a. Sold $1,354,700 of merchandise on credit (that had cost $976,200), terms n/30. b. Wrote off $18,800 of uncollectible accounts receivable. c. Received $674,500 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.00% of accounts receivable would be uncollectible. Year 2 e. Sold $1,530,400 of merchandise (that had cost $1,307,600) on credit, terms n/30. f. Wrote off $30,300 of uncollectible accounts receivable. g. Received $1,127,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.00% 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.) Answer is not complete. 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 1 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.) No 1 Transaction General Journal a(1) Accounts receivable Sales 2 a(2) Cost of goods sold 00 Debit Credit 3. 4 b. C. Merchandise inventory Allowance for doubtful accounts Accounts receivable Cash Accounts receivable 5 d. Bad debts expense Allowance for doubtful accounts 30 00 JE Year 2 > Answer is not complete. 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.) No Transaction General Journali