The following list of accounts was prepared for Tile, Etc., Incorporated on December 31, Year 2, after all account adjustments had been made:

Account Title
Cash	$135,000
Accounts receivable	130,000
Allowance for doubtful accounts	20,500
Inventory	435,000
Accounts payable	100,000
Common stock	475,000
Retained earnings	104,500

Tile, Etc. had the following transactions in Year 3:

Purchased merchandise on account for $605,000.

Sold merchandise that cost $445,000 for $940,000 on account.

Sold for $270,000 cash merchandise that had cost $170,000.

Sold merchandise for $215,000 to credit card customers. The merchandise had cost $106,000. The credit card company charges a 3 percent fee.

Collected $670,000 cash from accounts receivable.

Paid $635,000 cash on accounts payable.

Paid $150,000 cash for selling and administrative expenses.

Collected cash for the full amount due from the credit card company (see item 4).

Loaned $85,000 to J. Parks. The note had an 6 percent interest rate and a one-year term to maturity.

Wrote off $8,000 of accounts as uncollectible.

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 3 (see item 9).

Required:

Organize the transaction data in accounts under an accounting equation.

Prepare an income statement, a statement of changes in stockholders equity, a balance sheet, and a statement of cash flows for Year 3.

Complete this question by entering your answers in the tabs below. Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells require input. Complete this question by entering your answers in the tabs below. Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells require input