The following trial balance was prepared for Tile, Etc., Inc., on December 31, 2016, after the closing entries were posted:

account title debit credit

cash $125,000

account receivable 128,000

allowance for doubful accounts $19,500

inventory 431,000

account payable 98,000

common stock 465,000

retained earning 101,500

totals $684,000 $684,000

Tile, Et. had the following transactions in 2017:

1. Purchased merchandise on account for $595,000

2. Sold merchandise that cost $435,000 for $920,000 on account

3. Sold for $260,000 cash merchandise that had cost $166,000

4. Sold merchandise for $205,000 to credit card customers. The merchandise had cost $102,000. The credit card company charges a 3 percent fee.

5. Collected $650,000 cash from accounts receivalbe

6. Paid $625,000 cash on accounts payable

7. Paid $148,000 cash for selling and administrative expenses

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

9. Loaned $75,000 to J. Parks. The note had an 6 percent interest rate and a one year term to maturity

10. Wrote off $7,800 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, 2017 (see item 9)

Required:

a. Prepare general journal entries for these transactions, post the entries to T- accounts, and prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flow for 2017.

T- accounts

cash common stock

account receivable sales revenu

allowance for doubful accounts cost of goods sold

merchandise inventory credit card expense

notes receivable selling and administrativve expenses

interest receivable uncollectibel account expense

account payable retained earnings