The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted: Account Title
Cash $195,000
Accounts receivable 142,000
Allowance for doubtful accounts $26,500
Inventory 459,000
Accounts payable 112,000
Common stock 535,000
Retained earnings 122,500

Tile, Etc. had the following transactions in 2018:

a. Purchased merchandise on account for $665,000.
b. Sold merchandise that cost $505,000 for $1,060,000 on account.
c. Sold for $330,000 cash merchandise that had cost $194,000.
d. Sold merchandise for $275,000 to credit card customers. The merchandise had cost $130,000. The credit card company charges a 3 percent fee.
e. Collected $790,000 cash from accounts receivable.
f. Paid $695,000 cash on accounts payable.
g. Paid $162,000 cash for selling and administrative expenses.
h. Collected cash for the full amount due from the credit card company .
i. Loaned $67,000 to J. Parks. The note had an 6 percent interest rate and a one-year term to maturity.
j. Wrote off $9,200 of accounts as uncollectible.
h. 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, 2018.

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 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?