Problem $7-4$A $($Algo$)$ Accounts receivable transactions and bad debts adjustments LO C$1,$ P$2,$ P$3$

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 $1$

Sold $$1,353,800$ of merchandise on credit $($that had cost $$983,400),$ terms n$/30.$

Wrote off $$19,700$ of uncollectible accounts receivable.

Received $$670,100$ cash in payment of accounts receivable.

In adjusting the accounts on December $31,$ the company estimated that $2\mathrm{.}30\%$ of accounts receivable would be uncollectible.

Year $2$

Sold $$1,558,000$ of merchandise $($that had cost $$1,285,900)$ on credit, terms n$/30.$

Wrote off $$27,900$ of uncollectible accounts receivable.

Received $$1,276,900$ cash in payment of accounts receivable.

In adjusting the accounts on December $31,$ the company estimated that $2\mathrm{.}30\%$ 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.$)$

Note: Round your intermediate calculations to the nearest dollar.