Liang Company began operations on January 1, 2016. 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. 2016 Sold $1,354,000 of merchandise (that had cost $980,800) on credit, terms n/30. Wrote off $20,600 of uncollectible accounts receivable. Received $674,700 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible. 2017 Sold $1,530,400 of merchandise (that had cost $1,255,500) on credit, terms n/30. Wrote off $27,700 of uncollectible accounts receivable. Received $1,183,800 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible.