Blossom Companys balance sheet at December 31, 2021, is presented below.

Blossom Company Balance Sheet December 31, 2021
Cash		$13850			Accounts payable		$8650
Accounts receivable		21200			Common stock		19000
Allowance for doubtful accounts		(810)			Retained earnings		15800
Inventory		9210
		$43450					$43450

During January 2022, the following transactions occurred. Blossom uses the perpetual inventory method.

Jan. 1		Blossom accepted a 4-month, 8% note from Betheny Company in payment of Bethenys $3600 account.
3		Blossom wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($200).
8		Blossom purchased $18420 of inventory on account.
11		Blossom sold for $25500 on account inventory that cost $16150.
15		Blossom sold inventory that cost $770 to Jack Rice for $1100. Rice charged this amount on his Visa First Bank card. The service fee charged Blossom by First Bank is 3%.
17		Blossom collected $21800 from customers on account.
21		Blossom paid $17640 on accounts payable.
24		Blossom received payment in full ($200) from Drake Company on the account written off on January 3.
27		Blossom purchased advertising supplies for $1330 cash.
31		Blossom paid other operating expenses, $3050.

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, 2022, accounts receivable.
3.		A count of advertising supplies on January 31, 2022, reveals that $540 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.)

(You may want to set up T-accounts to determine ending balances.)

1. Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.) (Round answers to 0 decimal places, e.g. 1,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

2. Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.)

3. Prepare an income statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.)

4. Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.)

5. Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to 0 decimal places, e.g. 1,250.)