ash $14,510 Accounts payable $8,890 Accounts receivable 20,500 Common stock 16,800 Allowance for doubtful accounts (780 ) Retained earnings 17,790 Inventory 9,250 $43,480 $43,480 During January 2014, the following transactions occurred. Madson uses the perpetual inventory method. Jan. 1 Madson accepted a 4-month, 8% note from Matheny Company in payment of Mathenys $4,800 account. 3 Madson wrote off as uncollectible the accounts of Payton Corporation ($400) and Cruz Company ($300). 8 Madson purchased $18,470 of inventory on account. 11 Madson sold for $26,900 on account inventory that cost $17,210. 15 Madson sold inventory that cost $730 to Rich Jenson for $1,300. Jenson charged this amount on his Visa First Bank card. The service fee charged Madson by First Bank is 3%. 17 Madson collected $22,600 from customers on account. 21 Madson paid $16,200 on accounts payable. 24 Madson received payment in full ($300) from Cruz Company on the account written off on January 3. 27 Madson purchased advertising supplies for $1,430 cash. 31 Madson paid other operating expenses, $3,040. 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, 2014, accounts receivable. 3. A count of advertising supplies on January 31, 2014, reveals that $430 remains unused. 4. The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.) Prepare journal entries for the transactions listed above and adjusting entries. Prepare an adjusted trial balance at January 31,2014. Prepare as income statement and a retained earning statement for the month ending January 31,2014, and a classified balance sheet as of January 31, 2014