Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Kzinski Supply Co. has approached Natalie to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately $575, and Natalie would sell each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. The trial balance for Continuing Cookie Chronicle as on December 31, 2011 is as follows:

Continuing Cookie Chronicle

Trial Balance

December 31, 2011AccountDebitCreditCash

$1,180

Accounts Receivable

875

Supplies

350

Prepaid Insurance

1,210

Equipment

1,200

Accumulated Depreciation - Equipment

$40

Accounts Payable

75Salaries and Wages Payable

56Unearned Service Revenue

300Interest Payable

15Notes Payable

2,000

Owner's Capital

2,329

$4,815

$4,815

In the end, Natalie decides to use the perpetual inventory system. The following transactions happen during the month of January.

Jan. 4Bought five deluxe mixers on account from Kzinski Supply Co. for $2,875, FOB shipping point, terms n/30.

6Paid $100 freight on the January 4 purchase.

7Returned one of the mixers to Kzinski because it was damaged during shipping. Kzinski issues Continuing Cookie Chronicle credit for the cost of mixer plus $20 for the cost of freight that was paid on January 6 for one mixer.

8Collected $375 of the accounts receivable from December 2015.

12Three deluxe mixers are sold on account for $3,450, FOB destination, terms n/30. (Cost of goods sold is $595 per mixer.)

14Paid the $75 of delivery charges for the three mixers that were sold on January 12.

14Bought four deluxe mixers on account from Kzinski Supply Co. for $2,300, FOB shipping point, terms n/30.

17Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $1,000 cash in Continuing Cookie Chronicle.

18Paid $80 freight on the January 14 purchase.

20Sold two deluxe mixers for $2,300 cash. (Cost of goods sold is $595 per mixer.)

28Natalie issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $56 owed at December 31, 2016. (Natalie's assistant earns $8 an hour.)

28Collected the amounts due from customers for the January 12 transaction.

30Paid a $145 utility bill ($75 for the December 2016 accounts payable and $70 for the month of January).

31Paid Kzinski all amounts due.

31Natalie withdrew $750 for personal use.

Prepare the January 2017 transactions