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 $1,345,434 of merchandise on credit (that had cost $975,000), terms n/30.

b. Wrote off $18,300 of uncollectible accounts receivable.

c. Received $669,200 cash in payment of accounts receivable.

d. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable would be uncollectible.

Year 2

e. Sold $1,525,634 of merchandise on credit (that had cost $1,250,000), terms n/30.

f. Wrote off $27,800 of uncollectible accounts receivable.

g. Received $1,204,600 cash in payment of accounts receivable.

h. In adjusting the accounts on December 31, the company estimated that 1.5% 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.) (Round your intermediate calculations to the nearest dollar.)

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 $1,345,434 of merchandise on credit (that had cost $975,000 ), terms n/30. b. Wrote off $18,300 of uncollectible accounts receivable. c. Received $669,200 cash in payment of accounts receivable. d. In adjusting the accounts on December 31 , the company estimated that 1.5% of accounts receivable would be uncollectible. Year 2 e. Sold $1,525,634 of merchandise on credit (that had cost $1,250,000 ), terms n/30. f. Wrote off $27,800 of uncollectible accounts receivable. g. Received $1,204,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 1.5% of accounts receivable would be uncollectible. Prepare journal entries to record Liang's Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts Required: 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.) Prepare joumal 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 5 Sold $1,345,434 of merchandise on credit, terms n/30. repare journal entries to record Llang'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 5 Record cost of goods sold, $975,000. Journal entry worksheet Wrote off $18,300 of uncollectible accounts receivable. Journal entry worksheet