Carla Vista Co.'s balance sheet at December 31, 2021, is presented below. Carla Vista Co. Balance Sheet December 31, 2021 Accounts payable Cash $14,340 Accounts payable $9.230 Accounts receivable 19,700 Common stock 21,700 Allowance for doubtful accounts 14 (860) Retained earnings 12,230 Inventory 9,980 $43.160 $43,160 During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method. Jan. 1 Carla Vista accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account. 3 Carla Vista wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300). 8 Carla Vista purchased $18,210 of inventory on account. 11 Carla Vista sold for $27,000 on account inventory that cost $16,920. 15 Carla Vista sold inventory that cost $680 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Carla Vista by First Bank is 3%. 17 Carla Vista collected $23,600 from customers on account. 21 Carla Vista paid $17,630 on accounts payable. 24 Carla Vista received payment in full ($300) from Drake Company on the account written off on January 3. 27 Carla Vista purchased advertising supplies for $1,440 cash. 31 Carla Vista paid other operating expenses, $3,330. 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 $590 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.) 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.) Date Account Titles and Explanation Debit Credit