Problem 7-4A (Algo) Accounts receivable transactions and bad debts adjustments 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. (Hint. Create ledgers for AR and AFDA, post all entries to the ledgers to calculate the balance at year end, and use the 3-step process for Adjusting Entries to Adjust the AFDA account) Year 1 0. Sold $1,348,700 of merchandise on credit (that had cost $978,300 ), terms n/30. b. Wrote off $20,200 of uncollectible accounts recelvable c. Received $671,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31 , the company estimated that 130% of accounts receivable would be uncollectible. Year 2 e. Sold $1,514,100 of merchandise (that had cost $1,286,900) on credit, terms n/30 f. Wrote off $31,000 of uncollectible accounts receivable 9. Received $1,252.800 cash in payment of accounts recelvable h. In adjusting the accounts on December 31 , the company estimated that 130% of accounts recelvable would be uncollectible. Required: Prepare joumal 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 recelvable) (Round your intermediote colculations to the nearest dollar.) Prepare joumal entries to record Liang's Year 1 summarized transactions and its year-end adjustments to record bad debts expen (The company uses the perpetual inventory system, and it applies the allowance method for its accounts recelvable.) Journal entry worksheet 45 Sold $1,348,700 of merchandise on credit, terms n/30. Wote: Enter debits before credits. Prepare journal entries to record Liang's Year 2 summarized transactions and its year-end adjustments to record bad (The company uses the perpetual inventory system, and it applies the allowance method for its accounts receivable.) Journal entry worksheet 5 Sold $1,514,100 of merchandise on credit, terms n/30 Note: Enter debits before credits