Account Title Debit Credit Cash $120,000 Accounts receivable 127,000 Allowance for doubtful accounts $19,000 Inventory 429,000 Accounts payable 97,000 Common stock 460,000 Retained earnings 100,000 Totals $676,000 $676,000 Tile, Etcetera had the following transactions In Year 2: 1. Purchased merchandise on account for $590,000. 2. Sold merchandise that cost $430,000 for $910,000 on account. 3. Sold for $255,000 cash merchandise that had cost $164,000. 4. Sold merchandise for $200,000 to credit card customers. The merchandise had cost $100,000. The credit card company charges a 4 percent fee. 5. Collected $640,000 cash from accounts receivable. 6. Paid $620,000 cash on accounts payable. 7. Paid $147,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see Item 4). 9. Loaned $70,000 to J. Parks. The note had an 6 percent Interest rate and a one-year term to maturity. 10. Wrote off $7,700 of accounts as uncollectible. 11. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, Year 2 (see Item 9). Required a. Prepare general journal entries for these transactions, and post the entries to T-accounts. Also, prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year 2. b. Compute the net realizable value of accounts receivable at December 31, Year 2. c. If Tile, Etcetera used the direct write-off method, what amount of uncollectible accounts expense would It report on the Income statement? Complete this question by entering your answers in the tabs below. Required A General Journal accounts Required A T Required A Inc Stmt Required A Stmt Stkholder Eq Required A Bal Sheet Required A Stmt of Cash Flows Required B Required C Prepare general journal entries for these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B C D E F G H Record the purchase of inventory on account. Note: Enter debits before credits. Event 1. General Journal Debit Credit Record entry Clear entry View general journal