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Problem 7-4A (Algo) Accounts receivable transactions and bad debts adjustments LO C1, P2, P3 Llang 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 $1,353,800 of merchandise on credit (that had cost $980,100 ), terms n/30. b. Wrote off $19,500 of uncollectible accounts recelvable. c. Recelved $669,500 cash in payment of accounts recelvable. d. In adjusting the accounts on December 31 , the company estimated that 1,90% of accounts receivable would be uncollectible. Year 2 c. Sold $1,563.700 of merchandise (that had cost $1,266,000 ) on credit, terms n/30. f. Wrote off $25.600 of uncollectible accounts recelvable. g. Recelved $1,117,200 cash in payment of accounts receivable. h. In adjusting the accounts on December 31 , the company estimated that 1.90% 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 receivable.) Note: Round your intermediate calculations to the nearest dollar. Complete this question by entering your answers in the tabs below. Prepare journal entries to record Llang'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.)

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