Liang Company began operations on January 1, 2012. During its first two years, the company completed a number of transactions involving sales on credit,

Liang Company began operations on January 1, 2012. During its first two years, the company
completed a number of transactions involving sales on credit, accounts receivable collections, and bad
debts. These transactions are summarized as follows:
2012
a. Sold $1,345,434 of merchandise (that had cost $975,000) on credit, terms n/30.
b. Wrote off$18,300 of uncollectible accounts receivable.
c. Received $669,200 cash in payment of accounts receivable.
d. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable
will be uncollectible.
2013
e. Sold $1,525,634 of merchandise (that had cost $1,250,000) on credit, terms n/30.
t. Wrote off $27,800 of uncollectible accounts receivable.
g. Received $1,204,600 cash in payment of accounts receivable.
h. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable
will be uncollectible.
Required:
Prepare journal entries to record Liang's 20 12 summarized transactions and its year-end adjustments
to record bad debts expense. (The company uses the perpetual inventor/ system and it applies the
allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest
dollar amount.)

Prepare journal entries to record Liang's 20 13 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.) (Round your intermediate calculations to the nearest
dollar amount.)