Blossom Companys balance sheet at December 31, 2019, is presented below. WINTER COMPANY Balance Sheet December 31, 2019 Cash $13,600 Accounts payable $9,000 Accounts receivable 19,100 Owners capital 32,200 Allowance for doubtful accounts (900 ) Inventory 9,400 $41,200 $41,200 During January 2020, the following transactions occurred. Blossom uses the perpetual inventory method. Jan. 1 Blossom accepted a 4-month, 8% note from Merando Company in payment of Merandos $1,200 account. 3 Blossom wrote off as uncollectible the accounts of Inwood Corporation ($400) and Goza Company ($300). 8 Blossom purchased $17,400 of inventory on account. 11 Blossom sold for $27,500 on account inventory that cost $17,700. 15 Blossom sold inventory that cost $800 to Mark Lauber for $1,400. Lauber charged this amount on his Visa First Bank card. The service fee charged Blossom by First Bank is 3%. 17 Blossom collected $21,800 from customers on account. 21 Blossom paid $17,000 on accounts payable. 24 Blossom received payment in full ($300) from Goza Company on the account written off on January 3. 27 Blossom purchased supplies for $1,450 cash. 31 Blossom paid other operating expenses, $3,000. 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, 2020, accounts receivable. 3. A count of supplies on January 31, 2020, reveals that $400 remains unused. Prepare an income statement.