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

1. Sold $1,350,700 of merchandise on credit (that had cost $982,000), terms n/30.
2. Wrote off $20,700 of uncollectible accounts receivable.
3. Received $674,000 cash in payment of accounts receivable.
4. In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable would be uncollectible.

Year 2

1. Sold $1,512,400 of merchandise (that had cost $1,283,200) on credit, terms n/30.
2. Wrote off $27,800 of uncollectible accounts receivable.
3. Received $1,373,700 cash in payment of accounts receivable.
4. In adjusting the accounts on December 31, the company estimated that 1.40% 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.)