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The following trial balance was prepared for Tile Etc Inc on December 31 2017 after the closing entries were posted

The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted: Account Title Cash.................................................................$110,000 Accounts Receivable...............................................125,000 Allowance for Doubtful Accounts.................................18,000 Inventory............................................................425,000 Accounts Payable....................................................95,000 Common Stock......................................................450,000 Retained Earnings...................................................97,000 Tile, Etc. had the following transactions in 2018: 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 charges a 4 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 adjustin

May 22 2020 View more View Less

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