1. Sold $1,353,400 of merchandise on credit, terms n/30.
2. Record cost of goods sold, $982,600.
3. Wrote off $19,600 of uncollectible accounts receivable.
4. Received $667,600 cash in payment of accounts receivable.
5. In adjusting the accounts on December 31, the company estimated that 2.00% of accounts receivable would be uncollectible.

1. Sold $1,547,800 of merchandise on credit, terms n/30.
2. Record cost of goods sold, $1,253,000.
3. Wrote off $25,900 of uncollectible accounts receivable.
4. Received $1,371,300 cash in payment of accounts receivable.
5. In adjusting the accounts on December 31, the company estimated that 2.00% of accounts receivable would be uncollectible.

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 $1,353,400 of merchandise on credit (that had cost $982,600 ), terms n/30. b. Wrote off $19,600 of uncollectible accounts receivable. c. Received $667,600 cash in payment of accounts receivable. d. In adjusting the accounts on December 31 , the company estimated that 2.00% of accounts receivable would be uncollectible. Year 2 e. Sold $1,547,800 of merchandise (that had cost $1,253,000 ) on credit, terms n/30. f. Wrote off $25,900 of uncollectible accounts receivable. g. Received $1,371,300 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 2.00% 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. Journal entry worksheet 5 Sold $1,353,400 of merchandise on credit, terms n/30. Note: Enter debits before credits. Journal entry worksheet 5 Sold $1,547,800 of merchandise on credit, terms n/30. Note: Enter debits before credits