Blossom Company's balance sheet at December 31, 2021, is presented below. Blossom Company Balance Sheet December 31, 2021 Cash $13,820 Accounts payable Accounts receivable 21.500 Common stock Allowance for doubtful accounts (750) Retained earnings Inventory 9,730 $44,300 $9,370 18.900 16,030 $44,300 During January 2022, the following transactions occurred, Blossom uses the perpetual inventory method. Jan 1 3 8 11 15 Blossom accepted a 4-month, 8% note from Betheny Company in payment of Bethony's $2,400 account. Blossom wrote off as uncollectible the accounts of Walter Corporation (5500) and Drake Company ($200) Blossom purchased $18.110 of inventory on account Blossom sold for $26,200 on account inventory that cost $18.650. Blossom sold inventory that cost $650 to Jack Rice for $1.000 Rice charged this amount on his Visa First Blank card. The service fee charged Blossom by First Bank is 3% Blossom collected $21.900 from customers on account Blossom paid $17.480 on accounts payable, Blossom received payment in full (200) from Drake Company on the account written off on January 3 Blossom purchased advertising supplies for $1.280 cash, Blossomonidan 2240 17 21 24 27 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, 2022, accounts receivable. A count of advertising supplies on January 31, 2022, reveals that $550 remains unused. 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.) 4 [You may want to set up T-accounts to determine ending balances.) 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 O decimal places, ed. 1.250. Credit account titles are automatically indented when amount is entered. Do not Indent manually. Record foumal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit I 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 decimal places, eg. 1,250. Credit account tities are automatically Indented when amount is entered. Do not Indent manually. Record Journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit JJJ (To record sales revenues.) (To record cost of goods sold.) (To record cost of goods sold.) (To record sales revenues and service charges.) (To record cost of goods sold.) (To reverse allowance for doubtfuldebts.) coordinaadirom Banka.Com (To record cash received from Drake Company) (1) (2) (3) (4) eTextbook and Media IA
