The following post-closing trial balance was prepared for Tile, Etc., Inc., on December 31, Year 1: Account Title Cash Accounts Receivable $110,000 125,000 Allowance for Doubtful Accounts $ 18,000 Inventory 425,000 Accounts Payable 95,000 Common Stock 450,000 Retained Earnings 97,000 Totals $660,000 $660,000 Tile, Etc. had the following transactions in Year 2: 1. Purchased merchandise on account for $580,000. 2. Sold merchandise that cost $420,000 for $890,000 on account. 3. Sold for $245,000 cash merchandise that had cost $160,000. 4. Sold merchandise for $190,000 to credit card customers. The merchandise had cost $96,000. The credit card company charges a 4 percent fee. 5. Collected $620,000 cash from accounts receivable. 6. Paid $610,000 cash on accounts payable. 7. Paid $145,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4). 9. Loaned $60,000 to J. Parks on Sept. 1, Yr. 2. The note has an interest rate of 10% and is due in one year. 10. Wrote off $7,500 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 accrued interest of $2,000 on the note at December 31, Year 2 (see item 9).