The following list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1: Cash $ 5,960 Accounts receivable 18,280 Allowance for doubtful accounts $ 1,520 Inventory 23,530 Accounts payable 10,910 Common stock 21,800 Retained earnings 13,540 Transactions for Year 2 Acquired an additional $11,700 cash from the issue of common stock. Purchased $60,700 of inventory on account. Sold inventory that cost $61,100 for $96,500. Sales were made on account. The company wrote off $1,210 of uncollectible accounts. On September 1, LGS loaned $9,500 to Eden Co. The note had an 9 percent interest rate and a one-year term. Paid $14,530 cash for operating expenses. The company collected $88,350 cash from accounts receivable. A cash payment of $52,150 was paid on accounts payable. The company paid a $4,800 cash dividend to the stockholders. Uncollectible accounts are estimated to be 2 percent of sales on account. Recorded the accrued interest at December 31, Year 2 (see item 5).