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 $1,345,600 of merchandise (that had cost $977,900) on credit, terms n/30. b. Wrote off $18,500 of uncollectible accounts receivable. C. Received $666,500 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.80% of accounts receivable would be uncollectible. Year 2 e. Sold $1,563,400 of merchandise (that had cost $1,262,900) on credit, terms n/30. f. Wrote off $27,200 of uncollectible accounts receivable. g. Received $1,344,800 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.80% 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 1 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.) No Transaction General Journal Debit Credit 1 a(1) Accounts receivable 1,345,600 Sales 1,345,600 2 a(2) 977,900 Cost of good sold Merchandise inventory 977,900 3 b. Allowance for doubtful accounts 18,500 Accounts receivable 18,500 4 C. Cash 666,500 Accounts receivable 666,500 5 d. 20,350 X Bad debts expense Allowance for doubtful accounts 20,350 JE Year 1 JE Year 2 > View transaction list Journal entry worksheet