1 Sold inventory on account to Patina: Inventory Item Sales Price per item Quantity Sold Thank You $3.00 1000 Birthday $3.50 1000 3 Received a payment from Tidbits for the November 11 sale less the return on November 14. 3 Paid the amount owed to Cards Etc. from the November 4 purchase. 4 Meyer granted a sales allowance of $30 to Patina for damaged inventory sold on December 1. Patina decided to keep the damaged inventory. 5 Received merchandise back from Patina for a mistake in the December 1 shipment. Meyer accidentally included 200 Birthday cards that should have been Thank You cards. So, the actual shipment included 800 Thank You cards and 1200 Birthday cards. (Meyer recorded the cards thinking that she had correctly shipped them.) Patina sent the 200 Birthday cards back for credit they did not want Meyer to resend the correct cards. 6 Purchased inventory on credit terms of 2/10, n/30 from Greetings!: Inventory Item Cost per item Quantity Purchased Thank You $0.45 1000 7 Sold inventory on account to Occasions: Inventory Item Sales Price per item Quantity Sold Thank You $3.00 700 11 After all of the problems Patina had with its orders from Meyer, it paid off its account in full within the discount period. The payment includes the December 1 purchase, the December 4 allowance, the December 5 return, and the discount. 12 Paid Greetings! balance in full including the November 21 purchase (no discount) and the December 6 purchase less the discount. 14 Thingsville asked to transfer its accounts receivable balance into a note. Since Thingsville is a new company, the owners realized that they need more time to pay off their bill. Meyer agreed to a 3-month note receivable at 10% interest. The principal and interest will be due at the maturity date. 19 Sold inventory on account to Tidbits: Inventory Item Sales Price per item Quantity Sold Birthday $3.50 500 20 After hearing that Occasions was having financial problems, Meyer began to worry about collecting from them. She decided to set up an Allowance for Uncollectible Accounts so that her Balance Sheet would reflect the amount of realistically collectible receivables. She decided that she would probably be able to collect half of the December 7 sale. 25 Annie Meyer (the owner) made a personal withdrawal of $2,000. 26 Purchased $60 worth of supplies for cash. 27 Paid utilities of $300. 31 Prepare month-end adjusting entries for rent, insurance, depreciation, interest expense, and interest revenue for the month of December. Also, $40 worth of supplies was on hand at the end of the month. Required: 4. Journalize and post the year-end closing entries on December 31.