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Comprehensive accounting cycle problem (uses percent of revenue allowance method) The following trial balance was prepared for Tile, Etc

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Comprehensive accounting cycle problem (uses percent of revenue allowance method) The following trial balance was prepared for Tile, Etc., Inc., on December 31, 2016, after the closing entries were posted: Debit Credit $110,000 125,000 $ 18,000 Account Title Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Accounts Payable Common Stock Retained Earnings Totals 425,000 95,000 450,000 97,000 $660,000 $660,000 Tile, Etc. had the following transactions in 2017: 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 S620,000 cash from accounts receivable. 6. Paid S610,000 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 1. 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, 2017 (see item 9). Required - 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 2017 b. Compute the net realizable value of accounts receivable at December 31, 2017 c. If Tile, Etc. used the direct write-off method, what amount of uncollectible accounts expense would it report on the income statement?
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10 4 5 6 7 8 9 0 1 2 3 11a 11b 1 5 b. Compute the net realizable value of accounts receivable December 31, Year 2 7 c. If Tile, Etc., used the direct write-off method, what amount of uncollectible accounts expense would it report on the income statement? What amount is it recording under the allowance method?