Year 1

Journal entries 1-4

Year 2

Journal entries 1-5

Llang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable colletions, and bad debts. These transactions are summarized as follows Year 1 a. Sold $1,351,700 of merchandise on credit (that had cost$984,200 ), termis n/30. b. Wrote off $18,600 of uncollectible accounts recelvable. c. Recelved $672,300 cash in payment of accounts recelvable. d. In adjusting the accounts on December 31 , the company estimated that 1.50% of accounts recelvable would be uncollectible. Year 2 e. Sold $1,521,900 of merchandise (that had cost $1,299,600 ) on credit, terms n/30. f. Wrote off $26,100 of uncollectible accounts recelvable. g. Received $1,389,500 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 1.50% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Llang'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 applles the allowance method for its accounts receivable.) Note: Round your intermediate calculations to the nearest dollar. Journal entry worksheet 5 Sold $1,351,700 of merchandise on credit, terms n/30. Note: Enter debits before credits. Journal entry worksheet 5 Sold $1,521,900 of merchandise on credit, terms n/30. Note: Enter debits before credits