> 20:08 E Q TUTORIAL TEST 8 Exercise 1: Summer Company's balance sheet at December 31, 2016, is presented below. SUMMER COMPANY Balance Sheet December 31, 2016 Cash $13,100 Accounts receivable 19,780 Accounts payable Owner's capital $ 8,750 32,730 Allowance for doubtful accounts (800) $41,480 Inventory 9,400 $41,480 During January 2017, the following transactions occurred. Summer uses the perpetual inventory method. Jan. 1 Summer accepted a 4-month, 8% note from Merando Company in payment of Merando's $1,200 account. 2 Summer wrote off as uncollectible the accounts of Inwood Corporation ($450) and Goza Company ($280) 8 Summer purchased $17,200 of inventory on account. 11 Summer sold for $28,000 on account inventory that cost $19,600. 15 Summer sold inventory that cost $700 to Mark Lauber for $1,000. Lauber charged this amount on his Visa First Bank card. The service fee charged Summer by First Bank is 3%. 17 Summer collected $22,900 from customers on account. 21 Summer paid $14,300 on accounts payable. 24 Summer received payment in full ($280) from Goza Company on the account written off on January 3. 27 Summer purchased supplies for $1,400 cash. 31 Summer paid other operating expenses, $3,718. Adjustment data 1. Interest is recorded for the month on the note from January 1. 2. Bad debts are expected to be 6% of the January 31, 2017, accounts receivable. 3. A count of supplies on January 31, 2017, reveals that $560 remains unused. Instructions a. Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual system.) b. Prepare an adjusted trial balance at January 31, 2017. c. Prepare an income statement and an owner's equity statement for the month ending January 31, 2017, and a classified balance sheet as of January 31, 2017. Exercise 2: Allowance CR Bal. $8,482 at Dec. 31, 2018 At September 30, 2018, the accounts of Green Terrace Medical Center (GTMC) include the following: Accounts Receivable $ 145,000 Allowance for Bad Debts (credit 3,500