XYZ Merchandising uses a periodic inventory system.The balance in the inventory account on 12/31/19 is $210,000.They report the following accounts and balances on 12/31/19:

DebitCredit

Cash$129,000

Account Receivable100,000

Allowance for Doubtful Accounts1,000

Inventory balance on 1/1/19192,000

Purchases285,000

Equipment105,000

Accumulated Depreciation20,000

Account Payable95,000

Note Payable30,000

Common Stock90,000

Retained Earnings 1/1/19275,000

Sale Revenue 390,000

Operating Expenses90,000

Additional Information: The business has not recorded the annual depreciation for 2019 or an estimate for uncollectible accounts in 2019.The note was issued on 7/1/19 and is a short-term note with an 8% annual interest rate (the principal and interest will be paid in 2020).They have not accrued any interest in 2019.The annual depreciation for the equipment is $10,000.They estimate that 2% of the receivables will not be collected.

Preparing the balance sheet for XYZ Merchandising as of 12/31/19