Problem 9.4A Accounts receivable transactions and bad debts adjustments C1 P2 P3 Liang Company began operations in Year I. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transac- tions are summarized as follows. Year 1 a. Sold S1,345,434 of merchandise (that had cost $975.000) on credit, terms n/30. b. Wrote off $18,300 of uncollectible accounts receivable. c. Received $669,200 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable would be uncollectible. Check Bed Debts Expense. 528.100 Year 2 e. Sold $1.525,634 of merchandise on credit (that had cost $1.250,000), terms n/30. t. Wrote off $27.800 of uncollectible accounts receivable. 9. Received S1,204,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable would be uncollectible. Dy Bad Dots Expenso, $32,199 Required Prepare journal entries to record Liang's 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. Round to the nearest dollar.)