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The following trial balance was prepared for Tile. Etcetera, Incorporated on December 31, Year 1, after the closing entries were posted. Credit Debit $135,000 130,000

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The following trial balance was prepared for Tile. Etcetera, Incorporated on December 31, Year 1, after the closing entries were posted. Credit Debit $135,000 130,000 $20,500 Account Title Cash Accounts receivable Allowance for doubtful accounts Inventory Recounts payable Common stock Tetained earnings Totalo 435,000 100,000 475.000 104,500 $700.000 $700,000 The, Etcetera had the following transactions in Year 2: 1. Purchased merchandise on account for $605,000 2. Sold merchandise that cost $445,000 for $940,000 on account 3. Sold for $270,000 cash merchandise that had cost $170,000 4. Sold merchandise for $215.000 to credit card customers. The merchandise had cost $106,000. The credit card company charges a 3 percent fee 5. Collected $670,000 cash from accounts receivable. 6. Paid $635,000 cash on accounts payable. 7. Paid $150,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4). 9. loaned $85.000 to J. Parks. The note had an 6 percent interest rate and a one-year term to maturity 10. Wrote off $8,000 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, Year 2 (see item 9). Enter the beginning balances and post the entries to T-accounts. Cash Accounts Payable Beginning Balance Beginning Balance Ending Balance Ending Balance Accounts Receivable Common Stock Beginning Balance Beginning Balance Ending Balance Ending Balance Allowance for Doubtful Accounts Beginning Balance Retained Earnings Beginning Balance Ending Balance Ending Balance Merchandise Inventory Sales Revenue Beginning Balance Beginning Balance Ending Balance Ending Balance Notes Recelvable Cost of Goods Sold Beginning Balance Beginning Balance Ending Balance Ending Balance Interest Receivable Beginning Balance Credit Card Expense Beginning Balance Ending Balance Ending Balance Selling and Administrative Expenses Beginning Balance Ending Balance Uncollectible Accounts Expense Beginning Balance Ending Balance Interest Revenue Beginning Balance Ending Balance

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