• Tile, Etcetera had the following transactions in Year 2: Purchased merchandise on account for $580,000. Sold merchandise that cost $420,000 for $890,000 on account. Sold for $245,000 cash merchandise that had cost $160,000. Sold merchandise for $190,000 to credit card customers. The merchandise had cost $96,000. The credit card company charges a 4 percent fee. Collected $620,000 cash from accounts receivable. Paid $610,000 cash on accounts payable. Paid $145,000 cash for selling and administrative expenses. Collected cash for the full amount due from the credit card company (see item 4). Loaned $60,000 to J. Parks. The note had an 8 percent interest rate and a one-year term to maturity. Wrote off $7,500 of accounts as uncollectible. 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)