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. $($Hint: Create ledgers for AR

and AFDA, post all entries to the ledgers to calculate the balance at year end, and use the $3-$step process for Adjusting Entries to

Adjust the AFDA account$)$

Year $1$

a$.$ Sold $$1,346,400$ of merchandise on credit $($that had cost $$978,100),$ terms $\frac{n}{30}$

b$.$ Wrote off $$18,800$ of uncollectible accounts receivable

c$.$ Received $$667,000$ cash in payment of accounts receivable.

d$.$ In adjusting the accounts on December $31,$ the company estimated that $1\mathrm{.}90\%$ of accounts receivable would be uncollectible.

Year $2$

e$.$ Sold $$1,522,100$ of merchandise $($that had cost $$1,326,000)$ on credit, terms $\frac{n}{30}.$

f$.$ Wrote off $$25,800$ of uncollectible accounts receivable.

g$.$ Received $$1,351,100$ cash in payment of accounts receivable.

h$.$ In adjusting the accounts on December $31,$ the company estimated that $1\mathrm{.}90\%$ 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.$)$

Complete this question by entering your answers in the tabs below.

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.$)$

Journal entry worksheet

Sold $$1,346,400$ of merchandise on credit, terms $\frac{n}{30}.$

Note: Enter debits before credits.