The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 2: Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $ 5,510 17,305 1,675 23, 660 9,175 18,400 17,225 Transactions for Year 3 1. Acquired an additional $12,000 cash from the issue of common stock. 2. Purchased $60,300 of inventory on account. 3. Sold inventory that cost $62,500 for $93,800. Sales were made on account. 4. The company wrote off $1,180 of uncollectible accounts. 5. On September 1, LGS loaned $9,500 to Eden Co. The note had an 8 percent interest rate and a one-year term. 6. Paid $14,160 cash for operating expenses. 7. The company collected $72,660 cash from accounts receivable. 8. A cash payment of $52,420 was paid on accounts payable. 9. The company paid a $4,500 cash dividend to the stockholders. 10. Uncollectible accounts are estimated to be 1 percent of sales on account. 11. Recorded the accrued interest at December 31, Year 3 (see item 5). LITTLE GROCERY SUPPLIER (LGS) Accounting Equation for the Year 3 = Liabilities + Notes Interest Accounts Receivable Receivable Payable Event Assets Allowance + Merchandise Stockholders' Equity Common Retained Stock Earnings Accounts Receivable Accounts Titles for Retained Earnings Cash + Inventory + Bal. 1. + + 2. + + 3a. + + 3b. + + + + + 4. + 5. + + + + 6. 7. + + 8. 9. + 10. 11. Bal