Johnson Co. began operations on January 1, 2025. During the next 2 years, they completed a number of transactions involving credit sales, accounts receivable collections and bad debts. The transactions are summarized as follows (assume a perpetual inventory system):

2025

January 26 Merchandise that cost $608,000 was sold for $776,000 under credit terms of n/30.

June 13 Wrote off uncollectible accounts receivable in the amount of $16,000.

December 19 Received cash of $520,000 in payment of outstanding accounts receivable.

December 31 In adjusting the accounts on December 31, concluded that 2.0% of the outstanding accounts receivable would become uncollectible.

2026

March 26 Johnson Co. sold merchandise for $1,144,000 under credit terms of n/60. The merchandise had cost $896,000.

August 15 Wrote off uncollectible accounts receivable in the amount of $24,000.

November 22 Payments of outstanding accounts received totaled $560,000.

December 31 While accounts were being adjusted on December 31, it was concluded that 2.0% of the outstanding accounts receivable would become uncollectible.

Required:

Prepare journal entries to record Johnsons 2025 and 2026 summarized transactions, and the adjusting entries to record bad debt expense at the end of each year (December 31).