The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted:

Account Title
Cash	$	110,000
Accounts receivable		125,000
Allowance for doubtful accounts	$	18,000
Inventory		425,000
Accounts payable		95,000
Common stock		450,000
Retained earnings		97,000

Tile, Etc. had the following transactions in 2018:

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. The note had an 8 percent interest rate and a one-year term to maturity.
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 seven months of accrued interest on the note at December 31, 2018 (see item 9).

Required

1. how to do part 11b