9 Melissa operates a music shop called ABC Company. She carries charge accounts for a few customers and offers cash discounts of 2/10, n/30 to encourage prompt payment. Inventory on hand on January 1, Year 1 was $4,500 and the beginning cash balance was $5,500. Melissa uses a periodic inventory system. Jan 1 Purchase compact discs from Columbia Supply for $2,600. Terms were 1/10, n/30, FOB destination. 7 Purchased vintage albums from Warner Company for $3,100, terms 2/10, n/30, FOB shipping point. Paid $200 for advertising that had appeared in the local paper. 10 Compact discs, with a list price of $518, from Columbia Supply were defective. They were returned for a credit. Columbia agreed to pay the freight. 12 Paid the freight charges of $100 on shipment from Warner Company. 15 Cash sales for the first half of the month totaled $5,100. 15 Sales on account for the first half of the month totaled $2,000. 17 Paid the amount owed to Warner Company. 18 Two customers who had purchased compact discs on account for $100 returned them. 20 Paid a delivery company $220 for delivery of merchandise to customers during the month. 24 Customers owing $1,200 made payments less the discount. 27 Received the utility bill for the month on the store, $300. 28 Paid $400 in wages to sales clerks and $200 for to a part-time office clerk for the month. Cash sales for the second half of the month totaled $4,500. 30 Sales on account for the second half of the month totaled $1,000. 31 Estimated income taxes accrued are $1,500. 31 A count of inventory on hand showed $3,000 remaining. 30 Enter the above transactions in the General Journal and post them in the General Ledger t-accounts. Then calculate Cost of Goods Sold and Net Sales and prepare the Income Statement