TURUW utan was prepaitu IOIT, CL, L., VI VELMI, TO, E CIUITY US Wule pusieu. Account Title Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Accounts Payable Common Stock Retained Earnings Totals Debit Credit $110,000 125,000 $ 18,000 425,000 95,000 450,000 97,000 $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 charg 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, Year 2 (see item 9). The following trial balance was prepared for Tile, Etc., Inc., on December 31, Year 1, after the closing entries were posted: Account Title Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Accounts Payable Common Stock Retained Earnings Totals Debit Credit $110,000 125,000 $ 18,000 425,000 95,000 450,000 97,000 $660, eee $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 charg percent fee. 5. Collected $620,000 cash from accounts receivable. 6. Pald $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. Year 2 (see item 9). Prev 1 of 1 Next W P 17 MacBook Air DO 00 DU EVO 69 52 78 oop 000 F4 F3 A $ # & 7 % 5 0 9 8 6 Homework Prob 7-26A Check my work (s) 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). 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 flows for Year 2 b. Compute the net realizable value of accounts receivable at December 31, Year 2. c. Tie, Etc. used the direct write-off method, what amount of uncollectible accounts expense would it report on the income statement? Complete this question by entering your answers in the tabs below. Required A Required A Required A Required AT Required A Inc General Sort Required A Ball Sum of Cash Required Required accounts Journal Stmt Sheet Stk holder to Flows Prepare general Journal entries for these transactions. (If no entry is required for a transactior/event, select 'No journal entry required in the first account held.) View transaction lit View journal entry workshoot Credit General Journal No Event 01 Debut 580.000 560.000 Merchandise inventory Accounts payable 190.000 2a Accounts receivable