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

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 $982,200), terms n30.
b. Wrote off $20,900 of uncollectible accounts receivable.
c. Received $671,800 cash in payment of accounts receivable.
d. In adjusting the accounts on December 31, the company estimated that 2.40% of accounts receivable would be uncollectible.
Year 2
e. Sold $1,522,300 of merchandise (that had cost $1,280,700) on credit, terms n30.
f. Wrote off $26,500 of uncollectible accounts receivable.
g. Received $1,292,300 cash in payment of accounts receivable.
h. In adjusting the accounts on December 31, the company estimated that 2.40% 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.)
Note: Round your intermediate calculations to the nearest dollar.
Complete this question by entering your answers in the tabs below.
Journal Entry
Journal Entry
Year 1
Year 2
Prepare journal entries to record Liang's Year 2 summarized transactions and its year-end adjstments 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
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