Problem 7-4A Accounts receivable transactions and bad debts adjustments LO C1, P2, P3 Llang 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 $1,353,000 of merchandise (that had cost $984,800) on credit, terms n/30. b. Wrote off $19,100 of uncollectible accounts receivable. c. Received $667,500 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 $1,566,500 of merchandise (that had cost $1,285,800) on credit, terms n/30. f. Wrote off $27,700 of uncollectible accounts receivable. g. Received $1,339,600 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 recevable.) (Round your Intermediate calculations to the nearest dollar.) Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prepare journal entries to record Liang's Year 1 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.) View transaction list X 1 Sold $1,353,000 of merchandise on credit, terms n/30. > 2 Record cost of goods sold, $984,800. 3 Wrote off $19,100 of uncollectible accounts receivable. 4 Received $667,500 cash in payment of accounts receivable. Credit 5 In adjusting the accounts on December 31, the company estimated that 2.80% of accounts receivable would be un collectible. Note : = journal entry has been entered Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prepare journal entries to record Liang's 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.) View transaction list > 1 Sold $1,566,500 of merchandise on credit, terms n/30. 2 Record cost of goods sold, $1,285,800. 3 Wrote off $27,700 of uncollectible accounts receivable. 4 Received $1,339,600 cash in payment of accounts receivable. Credit 5 In adjusting the accounts on December 31, the company estimated that 2.80% of accounts receivable would be uncollectible. Note = journal entry has been entered Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prepare journal entries to record Liang's 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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit