Accounting Cycle Review 9 a-c3 Carla Vista Company's balance sheet at December 31, 2019, is presented below. WINTER COMPANY Balance Sheet December 31, 2019 $14,400 Accounts payable 20,600 Owner's capital (800) 9,400 $43,600 Cash Accounts receivable Allowance for doubtful accounts Inventory $8,650 34,950 $43,600 During January 2020, the following transactions occurred. Carla Vista uses the perpetual inventory method. Jan. 1 Carla Vista accepted a 4-month, 8% note from Merando Company in payment of Merando's $4,800 account. 3 Carla Vista wrote off as uncollectible the accounts of Inwood Corporation ($500) and Goza Company ($200). 8 Carla Vista purchased $18,300 of inventory on account. 11 Carla Vista sold for $25,900 on account inventory that cost $17,800. 15 Carla Vista sold inventory that cost $700 to Mark Lauber for $1.400. Lauber charged this amount on his Visa First Bank card. The service fee charged Carla Vista by First Bank is 3%. 17 Carla Vista collected $20,000 from customers on account. 21 Carla Vista paid $16,000 on accounts payable. 24 Carla Vista received payment in full ($200) from Goza Company on the account written off on January 3. 27 Carla Vista purchased supplies for $1,400 cash. 31 Carla Vista paid other operating expenses, $3,000. Adjustment data: 1. 2. 3. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2020, accounts receivable A count of supplies on January 31, 2020, reveals that $600 remains unused, Mild 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 Credit