1. Prepare all February journal entries and adjusting entries

Date	General Journal	Debit	Credit
Feb. 1	Notes Receivable- Kit Kat	1500
Record Conversion of Accounts Receivable to Notes Receivable	Accounts Receivable- Kit Kat		1500
Feb. 2	Insurance Expense	900
Record Payment of Insurance Premium	Cash		900
Feb. 5	Inventory	11250
Record Inventory Purchase	Accounts Payable		11250
Feb. 6	Inventory	450
Record Delivery Charges	Cash		450
Feb. 10a	COGS for 120 units = (45*85) + (75*75) = 9450
Record Sales Revenue of 120 sold units	Accounts Receivable	19800
	Sales Revenue (165*120)		19800
Feb. 10b	COGS	9450
Record COGS of 120 sold units	Inventory		9450
	{(3825/45)*45}+{(11250/150)*75}
Feb. 15a	Unearned Revenue	5200
Record Sales Revenue of 40 sold units	Sales Revenue		5200
Feb. 15b	COGS	3000
Record COGS of 40 sold units	Inventory		3000
	(40*75)
Feb. 15c	Inventory	750
Record Returned 10 units (Inventory)	COGS		750
	(10*75)
Feb. 15d	Sales Returns and Allowance	1650
Record Returned 10 units (Sales Returns and Allowance)	Accounts Receivable		1650
	(10*165)
Feb. 16	Wages Expense	2500
	Cash		2500
Feb. 17	Accounts Payable	11250
	Inventory		225
	Cash		11025
Feb. 18	Allowance for Doubtful Accounts	1850
	Accounts Receivable		1850
Feb. 19a	Accounts Payable	3000
Record Rent Payment	Rent Expense	3000
	Cash		6000
Feb. 19b	Cash	9570
Record Sales discount	Sales Discount	130
	Account Receivable		9700
Feb. 26a	Accounts Receivable	570
	Allowance for Doubtful Accounts		570
Feb. 26b	Cash	570
	Accounts Receivable		570
Feb. 27	Utility Expense	800
	Accounts Payable		800
Feb. 28	Dividends Declared	650
	Cash		650
AJE:
Feb. 29a	Wages Expense	2500
Record Wages	Wages Payable		2500
Feb. 29b	Bad Debt Expense	568
Record Bad Debts	Allowance for Doubtful Accounts		568
Feb. 29c	Interest Expense Accrued	145
Record Interests (on N/P)	Notes payable		145
	(14500*12%)/12
Feb. 29d	Interest Accrued	22.5
Record Interests (on N/R)	Note Receivable- Kit Kat		22.5
	(1500*9%)/6

Will's Widget Company (WWC) incorporated near the end of 2017. Operations began in January of 2018. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows Account Title Dr 21,170 12,200 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) Unearned Revenue (40 units) Accounts Payable (Jan Rent) Notes Payable Contributed Capital Retained Earnings - Feb 1,2012 1750 3,825 5,200 3,000 14,500 6,700 6,045 Additional Information you need to know about WWC: WWC establishes a policy that it will sell inventory at $165 per unit. In January, WWC received a $5,200 advance for 40 units, as reflected in Unearned Revenue WWC's February l inventory balance consisted of 45 units at a total cost of $3,825 WWC's note payable accrues interest at a 12% annual rate WWC will use the FIFO inventory method and record COGS on a perpetual basis