The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year Debit Cash Credit Accounts receivable $ 9,000 41,000 Allowance for doubtful accounts $ 2,500 Inventory 78,000 Accounts payable 21,000 Common stock Retained earnings Totals 50,000 54,500 $ 128,000 $ 128,000 Transactions for Year 2 1. LGS acquired an additional $20,000 cash from the issue of common stock. 2. LGS purchased $85,000 of inventory on account. 3. LGS sold inventory that cost $91,000 for $160,000. Sales were made on account. 4. The company wrote off $900 of uncollectible accounts. 5. On September 1, LGS loaned $18,000 to Eden Company The note had an 8 percent interest rate and a one-year term. 6. LGS paid $19,000 cash for operating expenses. 7. The company collected $161,000 cash from accounts receivable. 8. A cash payment of $92,000 was paid on accounts payable. 9. The company paid a $5,000 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $7,000. The cost of goods sold was $4,000. The credit card company charges a 4 percent service charge. The cash has not been received. 11. Uncollectible accounts are estimated to be 1 percent of sales on account. 12. Recorded the accrued interest at December 31, Year 2 (see item 5). b. Open T-accounts and record the beginning balances and the Year 2 transactions. Prev 14 15 of 15 Next > MacBook Air