Carla Vista Co.s balance sheet at December 31, 2021, is presented below. Carla Vista Co. Balance Sheet December 31, 2021 Cash $14,080 Accounts payable $8,620 Accounts receivable 21,100 Common stock 19,000 Allowance for doubtful accounts (850) Retained earnings 16,510 Inventory 9,800 $44,130 $44,130 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 Bethenys $3,600 account. 3 Carla Vista wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300). 8 Carla Vista purchased $15,770 of inventory on account. 11 Carla Vista sold for $26,900 on account inventory that cost $16,660. 15 Carla Vista sold inventory that cost $720 to Jack Rice for $1,100. 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 $24,800 from customers on account. 21 Carla Vista paid $14,990 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 $1,320 cash. 31 Carla Vista paid other operating expenses, $3,510.