Credit Debit $ 9,000 41,000 $ 2,500 Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings Totals 78,000 21,000 50,000 54,500 $128,000 $128,000 Transactions for Year 2 1. LGS acquired an additional $20,000 cash from the issue of common stock. 2. LGS purchased $85,000 of Inventory on account 3.LGS sold inventory that cost $91,000 for $160,000. Sales were made on account. 4. The company wrote off $900 of uncollectible accounts. 5. On September 1, LGS loaned $18,000 to Eden Co. The note had an 8 percent interest rate and a one-year term. 6. LGS paid $19.000 cash for operating expenses. 7. The company collected $161,000 cash from accounts receivable. 8. A cash payment of $92,000 was paid on accounts payable. 9. The company paid a $5,000 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $7.000. The cost of goods sold was $4,000. The credit card company charges a 4% service charge. The cash has not been received. 11. Uncollectible accounts are estimated to be 1 percent of sales on account. 12. Recorded the accrued interest at December 31, Year 2. Exercise 7-15A Part b b. Open T-accounts and record the beginning balances and the Year 2 transactions. Cash Accounts Payable Beg Bal Beg Bal End. Bal End Bal Accounts Receivable Common Stock Beg Bal Beg Bal End. Bal End. Bal Required information Allow. For Doubt. Acct. Retained Earnings 3 Beg. Bal Beg Bal End. Bal End. Bal d Merchandise Inventory Dividends Beg. Bal Beg. Bal End. Bal End. Bal ces Accts. Rec. Credit Cards Sales Revenue Beg Bal Beg. Bal End. Bal End. Bal