(1000 units of purple rain drink x $4 per unit) Purple Beverages Inc. sells only one product, the very popular and strong Purple Rain drink. The drinks are sold to local fraternity and sorority clubs. Purple Beverages Inc. had the following balances at January 1, 2018 Cash Inventory 8,000 debit 4,000 debit Accounts receivable 10,000 debit Allowance for doubtful accounts 1,000 credit 15,000 credit Contributed capital Retained earnings 6,000 credit Other information: 1. Purple Beverages inc, uses the perpetual method to account for its inventory and values its inventory using the First in First Out basis Purple Beverages Inc. uses the aging method to determine its allowance for doubtful accounts using the following rates: 2. Accounts not yet due Accounts 1-60 days overdue 1% 10% Accounts over 60 days overdue 20% D 3. Trade terms are 2/10, net 30 on sales. No discount is available for early payment to suppliers. The following were the only transactions that occurred during the first quarter of 2018: Jan 15 Received 59,500 cash from the collection of accounts receivable. Jan 30 Wrote off the remaining accounts receivable as uncollectible. Feb 1 Feb 10 Purchased 1000 units of purple rain drink at 55 per unit. Paid in cash Sold 1,000 units of purple rain drink at 57 per unit to the Gamma My Drinka Sorority on credit Feb 19 Received full payment from the Gamma My Drinka Sorority for the Feb. 10 sale. Feb 23 Purchased 2000 units of purple rain drink at 56 per unit Paid in cash Feb. 25 Sold 2000 units of purple rain drink at 58 per unit to the Sigma Big Ralph Fraternity on credit. The low sales were as a result of some fool in the Mar 25 Received 1000 units of purple rain drink back from the Sigma Big Ralph Fraternity. The goods were returned due to low sales accounting area scheduling a midterm the day after St. Patrick's Day Sigma Big Ralph Fraternity was given full credit for the goods returned.