Problem $7-4$A $($Algo$)$ Accounts receivable transactions and bad debts adjustments LO C$1,$ P$2,$ P$3$

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.

Yeer $1$

Sold $$1,354,200$ of merchandise on credit $($that had cost $$983,300),$ terms $\frac{n}{30}.$

b$.$ Wrote off $$19,900$ of uncollectible accounts recelvable.

c$.$ Recelved $$671,800$ cash in payment of accounts recelvable.

d$.$ In adjusting the accounts on December $31,$ the company estimated that $2\mathrm{.}30\%$ of accounts recelvable would be uncollectible.

Year $2$

e$.$ Sold $$1,574,500$ of merchandise $($that had cost $$1,276,900)$ on credit, terms n$/30.$

f$.$ Wrote off $$30,500$ of uncollectible accounts recelvable.

g$.$ Recelved $$1,346,800$ cash in payment of accounts recelvable.

h$.$ In adjusting the accounts on December $31,$ the company estimated that $2\mathrm{.}30\%$ of accounts recelvable 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 applies the allowance method for its accounts recelvable.$)$

Note: Round your Intermedlate calculations to the nearest dollar.

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Journal Entry

Journal Entry

Year $1$

Year $2$

Prepare joumal 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. Provide chart and fill in the answers