Accounting Cycle Review 9 a-c3 Cullumber Company's balance sheet at December 31, 2019, is presented below. WINTER COMPANY Balance Sheet December 31, 2019 $14,300 Accounts payable 20,600 Owner's capital (700) 9,100 $43,300 Cash Accounts receivable Allowance for doubtful accounts Inventory $8.900 34,400 $43,300 During January 2020, the following transactions occurred. Cullumber uses the perpetual inventory method. Jan. 1 3 8 11 15 17 21 24 27 31 Cullumber accepted a 4-month, 8% note from Merando Company in payment of Merando's $5,100 account. Cullumber wrote off as uncollectible the accounts of Inwood Corporation ($500) and Goza Company ($100). Cullumber purchased $16,700 of inventory on account. Cullumber sold for $26,600 on account inventory that cost $17,600. Cullumber sold inventory that cost $800 to Mark Lauber for $1,100. Lauber charged this amount on his Visa First Bank card. The service fee charged Cullumber by First Bank is 3%. Cullumber collected $20,200 from customers on account. Cullumber paid $16,400 on accounts payable. Cullumber received payment in full ($100) from Goza Company on the account written off on January 3. Cullumber purchased supplies for $1,400 cash. Cullumber paid other operating expenses, $3,500. 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 $500 remains unused. 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.) (Indudents for of goods sold in the perpetual sy.com Prepare journal Date for the transactions sted above and adjusting Account Titles and explanation Debit Credit (To records ) (To d o goods sold.) (To n d Sales and service charge.) (To record cost of goods sold) (Tor a te the previously written ofl.) (Tond the paymenlived.) (To record other operating expense.) (Tood instr ) (To record bad debt pan .) (Ta rited Supplia ) Prepare an adjuriled trial balance at January 31, 2020. CULLUMBER COMPANY LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare an instant CULLUMBER COMPANY LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare a wa y a nt for the month anding January 31, 2020 CULLUMBER COMPANY Owner's Equity Statement ac c o 1.2020 current in order of houdy.) CULLUMBER COMPANY Blance Sheet Liabilities and Owner's Equity