Problem 7-4A (Algo) Accounts receivable transactions and bad debts adjustments LO C1, P2, P3 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 a. Sold $1,351,700 of merchandise on credit (that had cost $980,600 ), terms n/30. b. Wrote off $21,200 of uncollectible accounts recelvable. c. Recelved $669,100 cash in payment of accounts recelvable. d. In adjusting the accounts on December 31, the company estimated that 1.60% of accounts recelvable would be uncollectible. Year 2 e. Sold $1,597,900 of merchandise (that had cost $1,297,900 ) on credit, terms n/30. f. Wrote off $28,600 of uncollectible accounts receivable. g. Recelved $1,184,800 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 1.60% 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