Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1.354,000 of merchandise that had cost $985,000) on credit, terms n/30. b. Wrote off $20,200 of uncollectible accounts receivable. c. Received $668,800 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.20% of accounts receivable would be uncollectible.