24.57/25 SUNLAND COMPANY Balance Sheet December 31, 2019 Inventory 9,000 20.000 Accounts receivable 21,800 Share Capital-ordinary Retained earnings Accounts payable 14.300 Allowance for doubtful accounts (900) 3,000 Cash 13.200 43,100 E 43.100 During January 2020, the following transactions occurred. Sunland uses the perpetual inventory method Jan 1 Sunland accepted a 4-month, 8% note from Merando Company in payment of Merando's 3.600 account 3 Sunland wrote off as uncollectible the accounts of Inwood Corporation (E 300) and Gora Company (E 3001 B Sunland purchased E 18,600 of inventory on account. 11 Sunland sold for 25.900 on account inventory that cost [ 17.300 24.577 25 3 Sunland wrote off as uncollectible the accounts of Inwood Corporation (300) and Gaza Company E3001 III! 8 11 15 17 Sunland purchased 18,600 of inventory on account Sunland sold for 25.900 on account inventory that cost 17300 Sunland sold inventory that cost 800 to Mark Lauber for E 1.200. Lauber charged this amount on his Visa First Bank card The service fee charged Sunland by First Bank is 3% Sunland collected E 22.200 from customers on account. Sunland paid 17,000 on accounts payable. Suntand received payment in full (E 300) from Goza Company on the account written oft on January 3. Sunland purchased supplies for E 1.500 cash. Sunland paid other operating expenses. 3,400, 21 24 27 31 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, 2020, accounts receivable. 3 A count of supplies on January 31, 2020. reveals that 600 remains unused. 24.57/25 E ili Your answer is partially correct. Prepare journal entries for the transactions listed above and adjusting entries. Include entries for cost of goods sold using the perpetual system) (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Cres Jan. 1 Notes Receivable 3600 Accounts Receivable Jan. 3 Allowance for Doubtful Accounts 800 Accounts Receivable 18600 Jan. 8 Inventory Accounts Payable (2) Bad Debt Expense Allowance for Doubtful Accounts 1 (To record bad debts expense.)