Question $1$: $(16$ 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$)$:

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 $31).$