Required: Prepare journal entries to record Liangs 2016 and 2017 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 your intermediate calculations to the nearest dollar amount.)

Liang Company began operations on January 1, 2016. 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. 2016

Sold $1,350,700 of merchandise (that had cost $980,000) on credit, terms n/30.

Wrote off $19,400 of uncollectible accounts receivable.

Received $668,400 cash in payment of accounts receivable.

In adjusting the accounts on December 31, the company estimated that 1.60% of accounts receivable will be uncollectible.

2017

Sold $1,589,900 of merchandise (that had cost $1,267,700) on credit, terms n/30.

Wrote off $30,900 of uncollectible accounts receivable.

Received $1,207,200 cash in payment of accounts receivable.

In adjusting the accounts on December 31, the company estimated that 1.60% of accounts receivable will be uncollectible.

Required Prepare journal entries to record Liang's 2016 and 2017 summarized transactions and its year-end adjustments to record expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receiv your intermediate calculations to the nearest dollar amount.) Answer is not complete Complete this question by entering your answers in the tabs below JE 2016 JE 2017 Prepare journal entries to record Liang's 2016 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.) Transaction General Journal Debit Credit Accounts receivable 1,350,700 Sales 1,350,700 Cost of good sold 980,000 Merchandise inventory 980,000 Allowance for doubtful accounts 19,400 Accounts receivable 19,400 4 C. Cash 668,400 Accounts receivable 668,400 Bad debts expense 30,006 llowance for doubtful accounts 30,006