The following iist of accounts was drawn for Tile, Etc, inc on December 31, Year 1, after the closing entries were posted: Tile, Etc had the following transactions in Year 2 . 1. Purchased merchandise on account for $620.000. 2 Sold merchandise that cost $460,000 for $970,000 on account 3. Sold for $285,000 cash merchandise that had cost $176,000 4. Sold merchandise for $230,000 to credit card customers. The merchandise had cost \$112.000: The credit card company charges a 4 percent fee 5. Collected $700,000 cash from accounts receivable. 6. Paid $650,000 cash on accounts payable 7. Paid $153,000 cash for selling and administrative expenses. 8 Collected cash for the full amount due from the credit card compary (see item 4). 9. Loaned $50,000 to J. Parks. The note had an 9 percent interest rate and a one-year term to maturity 10. Wrote off $8,300 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 Z (see item 9) TILE, ETC., INC. Income Statement For the Year Ended December 31, Year 2