Liang Company began operations in Year 1. 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.Year 1Sold $1,354,900 of merchandise (that had cost $982,100) on credit, terms n/30.Wrote off $20,300 of uncollectible accounts receivable.Received $670,200 cash in payment of accounts receivable.In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible.Year 2Sold $1,584,300 of merchandise (that had cost $1,326,000) on credit, terms n/30.Wrote off $30,300 of uncollectible accounts receivable.Received $1,203,400 cash in payment of accounts receivable.In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible.Required:Prepare journal entries to record Liang’s Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense.