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Liang Company began operations In Year $1.$ During Its first two years, the company completed a number of transactions Involving sales

on credit, accounts recelvable collections, and bad debts. These transactions are summarized as follows.

Year $1$

a$.$ Sold $$1,350,400$ of merchandlse on credit $($that had cost $$976,200),$ terms $\frac{n}{30}.$

b$.$ Wrote off $$20,700$ of uncollectlble accounts recelvable.

c$.$ Recelved $$672,500$ cash in payment of accounts recelvable.

d$.$ In adjusting the accounts on December $31,$ the company estimated that $1\mathrm{.}10\%$ of accounts recelvable would be uncollectible.

Year $2$

e$.$ Sold $$1,528,800$ of merchandise $($that had cost $$1,274,400)$ on credit, terms $\frac{n}{30}.$

f$.$ Wrote off $$30,300$ of uncollectlble accounts recelvable.

g$.$ Recelved $$1,333,800$ cash in payment of accounts recelvable.

h$.$ In adjusting the accounts on December $31,$ the company estimated that $1\mathrm{.}10\%$ of accounts recelvable would be uncollectlble.

Requlred:

Prepare Journal entrles to record Llang's Year $1$ and Year $2$ summarlzed 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 recelvable.$)$

Note: Round your Intermedlate calculations to the nearest dollar.Complete this question by entering your answers in the tabs below.

Prepare journal entries to record Liang's Year $1$ 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.$)$

Journal entry worksheet

Sold $$1,350,400$ of merchandise on credit, terms $\frac{n}{30}.$

Note: Enter debits before credits.

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