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310 RCCOunC5 Cycle Review ACRS Hudson Corporation's balance sheet at December 31, 2021, is presented below. Hudson Corporation Balance Sheet December 31, 2021 Cash $13.100 Accounts payable Accounts receivable 19,780 Common stock Allowance for doubtful accounts (800) Retained earnings Inventory 9.400 $8,750 20,000 12,730 $41.480 841,480 17 During January 2022, the following transactions occurred. Hudson uses the perpetual inventory method Jan. 1 Hudson accepted a 4-month, 8 note from Betheny Company in payment of Betheny's $1,200 account. 3 Hudson wrote off as uncollectible the accounts of Walter Corporation ($450) and Drake Company ($280) 8 Hudson purchased $17.200 of inventory on account 11 Hudson sold for $25,000 on account inventory that cost $17.500 15 Hudson sold inventory that cost $700 to Jack Rice for $1.000. Rice charged this amount on his Visa First Bank card. The service fee charged Hudson by First Rank is 3 Hudson collected $22.900 from customers on account. 21 Hudson paid $16,300 on accounts payable. 24 Hudson received payment in full (S280) from Drake Company on the account written of on January 3. 27 Hudson purchased advertising supplies for $1,400 cash. 31 Hudson paid other operating expenses, $3,218. 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 5560 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.) Instructions (You may want to set up T-accounts to determine ending balances.) a. Prepare journal entries for the transactions listed above and adjusting entries (include entries for cost of goods sold using the perpetual inventory system.) b. Prepare an adjusted trial balance at January 31, 2022 c. Prepare an income statement and a retained earnings statement for the month ending January 31, 2022, and a classified balance sheet as of January 31, 2022