Cash $ $28,340$

Accounts Receivable $12,310$

Allowance for Doubtful Accounts $980*$

Inventory $2,000$

Deferred Revenue $(40$ units$)5,600$

Accounts Payable $1,170$

Notes Payable $($long$-$term$)24,000$

Common Stock $6,200$

Retained Earnings $4,700$

$*$ credit balance.

The following information is relevant to the first month of operations in the following year:

JXM will sell inventory at $$140$ per unit. JXM$$s January $1$ inventory balance consists of $50$ units at a total cost of $$2,000.$ JXM$$s policy is to use the FIFO method, recorded using a perpetual inventory system.

In December, JXM received a $$5,600$ payment for $40$ units JXM is to deliver in January; this obligation was recorded in Deferred Revenue. Rent of $$1,400$ was unpaid and recorded in Accounts Payable at December $31.$

JXM$$s notes payable mature in three years, and accrue interest at a $10\%$ annual rate. $1.$Sales of $60$ units of inventory occurring during the period of $01/0701/10$ are recorded on $01/10.$ The sales terms are n$/30.$ Record the cost of the units sold. $2.$Sales of $70$ units of inventory during the period of $01/1001/28,$ with terms n$/30,$ are recorded on $01/28.$ Record the cost of the units sold. $3.$Of the sales recorded on $01/28,10$ units are returned to JXM on $01/30.$ The inventory is not damaged and can be resold. JXM charges sales returns to a contra$-$revenue account. Record the return of the units to inventory.