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Question 4: (22 marks) Johnson Co. began operations on January 1, 2025. During the next 2 years, they completed a number of transactions involving credit sales, accounts receivable collections and bad debts. The transactions are summarized as follows (assume a perpetual inventory system): 2025 January 26 Merchandise that cost $608,000 was sold for $776,000 under credit terms of n/30. June 13 December 19 December 31 2026 March 26 August 15 November 22 December 31 Wrote off uncollectible accounts receivable in the amount of $16,000. Received cash of $520,000 in payment of outstanding accounts receivable. In adjusting the accounts on December 31 , concluded that 2.0% of the outstanding accounts receivable would become uncollectible. Johnson Co. sold merchandise for $1,144,000 under credit terms of n/60. The merchandise had cost $896,000. Wrote off uncollectible accounts receivable in the amount of $24,000. Payments of outstanding accounts received totaled $560,000. While accounts were being adjusted on December 31 , it was concluded that 2.0% of the outstanding accounts receivable would become uncollectible. Required: Prepare journal entries to record Johnson's 2025 and 2026 summarized transactions, and the adjusting entries to record bad debt expense at the end of each year (December 31)

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