Comprehensive Accounting Cycle Review 08 (Part Level Submission) Oriole Company's balance sheet at December 31, 2021, is presented below. Cash Accounts receivable Oriole Company Balance Sheet December 31, 2021 $13,680 Accounts payable 21,100 Common stock (740) Retained earnings 9,990 $44,030 $8,900 21,800 13,330 Allowance for doubtful accounts Inventory $44,030 During January 2022, the following transactions occurred. Oriole uses the perpetual inventory method. Jan. 1 3 8 11 15 Oriole accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $4,800 account. Oriole wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). Oriole purchased $18,800 of inventory on account. Oriole sold for $25,700 on account inventory that cost $16,020. Oriole sold inventory that cost $730 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee charged Oriole by First Bank is 3%. Oriole collected $24,400 from customers on account. Oriole paid $17,100 on accounts payable. Oriole received payment in full ($300) from Drake Company on the account written off on January 3. Oriole purchased advertising supplies for $1,540 cash. Oriole paid other operating expenses, $2,910. 17 21 24 27 31 Adjustment data: 1. Interest is recorded for the month on the note from January 1. 1. 2. 3. 4. 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 $510 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.) (You may want to set up T-accounts to determine ending balances.) (a) Your answer is partially correct. Try again. 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 Jan. 1 Notes Receivable 4800 Accounts Receivable 4800 Jan. 3 Allowance for Doubtful Accounts 800 Accounts Receivable 800 Jan. 8 Inventory 18800 Accounts Payable 18800 Accounts Payable 18800 Jan. 11 v Accounts Receivable 25700 Sales Revenue 25700 (To record sales revenues.) Jan. 11 Cost of Goods Sold 16020 Inventory 16020 (To record cost of goods sold.) Jan. 15 Cash 1067 Service Charge Expense 33 Sales Revenue 1100 (To record sales revenues and service charges.) Jan. 15 Cost of Goods Sold 730 Inventory 730 (To record cost of goods sold.) Jan. 17 v Cash 24400 w Cash 2910 Jan. 31 v (1) Interest Receivable 32 Interest Revenue 32 (2) Bad Debts Expense 668 X Allowance for Doubtful Accounts 908 (3) Supplies Expense 1030 Supplies 1030 X (4) Income Tax Expense 1479 X Income Taxes Payable 1479 Click if you would like to Show Work for this question: Open Show Work