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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 receivable

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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 receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,350,000 of merchandise (that had cost $977,200) on credit, terms n/30. b. Wrote off $18,500 of uncollectible accounts receivable. c. Received $670,300 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 $1,537,300 of merchandise (that had cost $1.291,200) on credit, terms n/30. f. Wrote off $29,000 of uncollectible accounts receivable. g. Received $1,293,600 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.) JE Year 1 JE Year 2 Prepare journal entries to record Liang's Year 1 summarized transactions and its year-end adjustments to (The company uses the perpetual inventory system and it applies the allowance method for its accounts View transaction list Journal entry worksheet Sold $1,350,000 of merchandise on credit, terms n/30. Note: Enter debits before credits. General Journal Debit Credit Transaction a(1) Record entry Clear entry View general Journal Journal entry worksheet Sold $1,537,300 of merchandise on credit, terms n/30. Note: Enter debits before credits. Transaction General Journal Debit Credit e(1) Record entry Clear entry View general Journal Journal entry worksheet

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