Question 4: (22 marks) Johnson Co. began operations on January 1, 2021. During the next 2 years, they completed a number of transactions involving credit sales, accounts receivable collections and bad debts. The transactions are summarized as follows (assume a perpetual inventory system): 2021 January 26 Merchandise that cost $608,000 was sold for $776,000 under credit terms of n/30. June 13 Wrote off uncollectible accounts receivable in the amount of $16,000. December 19 Received cash of $520,000 in payment of outstanding accounts receivable. December 31 In adjusting the accounts on December 31, concluded that 2.0% of the outstanding accounts receivable would become uncollectible. 2022 March 26 Johnson Co. sold merchandise for $1,144,000 under credit terms of n/60. The merchandise had cost $896,000. August 15 Wrote off uncollectible accounts receivable in the amount of $24,000. November 22 Payments of outstanding accounts received totaled $560,000. December 31 While accounts were being adjusted on December 31, it was concluded that 2.0% of the outstanding accounts receivable would become uncollectible. Required: Prepare journal entries to record Johnson's 2021 and 2022 summarized transactions, and the adjusting entries to record bad debt expense at the end of each year (December 31)