At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $1,216,500 $2,866,000 In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts $868, 398 debit $ 12,450 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption o. Bad debts are estimated to be 3% of credit sales b. Bad debts are estimated to be 2% of total sales. C. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. 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 $1,354,600 of merchandise (that had cost $979,300) on credit, terms n/30 b. Wrote off $21.400 of uncollectible accounts receivable. c. Received $668,500 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible Year 2 e. Sold $1.509.100 of merchandise (that had cost $1,285,200) on credit, terms n/30 f. Wrote off $33,800 of uncollectible accounts receivable, g. Received $1323,300 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.50% 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.)