tar, it does not completion. Return to question Problem 7-4A 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 $1,346,900 of merchandise (that had cost $979,400) on credit, terms n/30. b. Wrote off $18,400 of uncollectible accounts receivable. c. Received $672,100 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.60% of accounts receivable would be uncollectible. Year 2 e. Sold $1,530,100 of merchandise (that had cost $1,302,100) on credit, terms n/30. f. Wrote off $34,700 of uncollectible accounts receivable. g. Received $1,375,000 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 berpeluanventory system and it applies the allowance method for its accounts 1 Prey 1 of 1 Next