Davidson Co. had the following transactions in 2017:

- The business was started when it acquired $200,000 in cash from the issuance of common stock - The company purchased $900,000 of merchandise throughout the year

- During the year, the Company sold merchandise for $1,200,000 (broken out as follows): - $ 520,000 Cash Sales - 380,000 Credit Card Sales - The Credit Card Company charges a 4% service fee - 300,000 Sales on Account =$ 1,200,000

- The merchandise sold was pulled from merchandise inventory and totaled $710,000 - The company collected all of the sales from the credit card receivable - The company collected $210,000 of Accounts Receivable - The company paid $190,000 cash for selling and administrative expenses - Determined that 5% of the ending accounts receivable balance would be uncollectible

Required:

A) - Prepare Journal entries for each of the transactions and post them to T-Accounts B) - Prepare an income statement, balance sheet, and statement of cash flows for 2017