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 (that had cost $975,000) on credit, terms n30.

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

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