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LiaLiang Company began operations in Year 1 . During its first two years, the company completed a number of transactions involving sales on credit, accounts

LiaLiang 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 $1,350,800 of merchandise on credit (that had cost $977,600), terms n/30.
Wrote off $21,900 of uncollectible accounts receivable.
Received $669,800 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated that 1.90% of accounts receivable would be uncollectible.
Year 2
Sold $1,564,100 of merchandise (that had cost $1,336,400) on credit, terms n/30.
Wrote off $25,500 of uncollectible accounts receivable.
Received $1,198,900 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated that 1.90% of accounts receivable would be uncollectible.
Required:
Prepare journal entries to record Liangs 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.)
Note: Round your intermediate calculations to the nearest dollar.ng 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 $1,350,800 of merchandise on credit (that had cost $977,600), terms n/30.
Wrote off $21,900 of uncollectible accounts receivable.
Received $669,800 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated that 1.90% of accounts receivable would be uncollectible.
Year 2
Sold $1,564,100 of merchandise (that had cost $1,336,400) on credit, terms n/30.
Wrote off $25,500 of uncollectible accounts receivable.
Received $1,198,900 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated that 1.90% of accounts receivable would be uncollectible.
Required:
Prepare journal entries to record Liangs 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.)
Note: Round your intermediate calculations to the nearest dollar.

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