$M$&$D$ Inc. began operations in January $2019.$ All of the company's sales are made on account. At the end of its first year of operations, the company's trial balance at December $31,2019,$ showed a $$63,500$ outstanding balance in Accounts Receivable. During $2019,75\%$ of the total credit sales were collected and no accounts were written off as uncollectible. Management estimated that $1\mathrm{.}5\%$ of the credit sales would be uncollectible. During the following year, $2020,$ M&D had sales totalling $$266,000.$ It collected $80\%$ of these sales, together with $95\%$ of the outstanding receivables from $2019.$ During $2020,$ the accounts of seven customers, who owed a total of $$4,700,$ were judged uncollectible and were written off. During the year, the company recovered $$2,300$ from customers whose accounts had previously been written off. $($Note that this amount was not included in the collection figures given above.$)$ The company estimated its bad debts expense to be $1\%$ of its credit sales.

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Prepare the necessary journal entries for recording all the preceding transactions in the accounting system of M&D Inc. for $2019$ and $2020.($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Tities and Explanation

Debit

Credit: $$

$2019$