Accounting Cycle Project (30 points) Due date: September 23) The Queen of the Snows started a business, Winter Carnival Co., a company that specializes in merchandise for ice-fishing, snow-sliding, treasure-hunting and other winter activities. In 2017, the company had the following beginning balances (in dollar). Accounts receivable Allowance for doubtful 30,000Accounts payable $3,000 $50,000 Common stock $220,000 Machine $70,000 Accumulated depreciation $10,000 accounts Cash Inventory Prepaid advertisement $36,000 Retained earnings Salary payable $3,000 - machine $100,000 $50,000 $200,000 During 2017, the following transactions occurred. winter Carnival borrowed $500,000 on February 1 , 2017 from a local bank, on a 2% note for 5 years. Winter Carnival would pay interest semi-annually on each August I and February 1. l. 2. Winter Carnival delivered merchandise and eamed sales revenue, totaled $300,000, f 3. In addition, Winter Carnival signed a sales contract with a customer. Mini-Soda Company 4. Winter Carnival acquired additional merchandise, totaled $100,000, of which $90,000 was which $250,000 was on credit. Cost, to Winter Carnival Co., of the merchandise sold, totaled $150,000. to deliver a total of $60,000 merchandise in January 2018. Winter Carnival collected $18,000 cash in advance from this customer on October 17,2017