Comprehensive Problem 8 a-b, c1-c3 (Part Level Submission) Splish Brothers Inc.'s balance sheet at December 31, 2019, is presented below. Cash Accounts receivable Allowance for doubtful accounts Inventory Splish Brothers Inc. Balance Sheet December 31, 2019 $13,600 Accounts payable 21,100 Common stock (900) Retained earnings 9,000 $42,800 $8,850 19,000 14,950 $42,800 During January 2020, the following transactions occurred. Splish Brothers uses the perpetual inventory method. Jan. 1 Splish Brothers accepted a 4-month, 8% note from Merando Company in payment of Merando's $3,600 account. 3 Splish Brothers wrote off as uncollectible the accounts of Inwood Corporation ($400) and Goza Company ($200). 8 Splish Brothers purchased $17,000 of inventory on account. 11 Splish Brothers sold for $27,700 on account inventory that cost $17,000. 15 Splish Brothers sold inventory that cost $600 to Mark Lauber for $1,100. Lauber charged this amount on his Visa First Bank card. The service fee charged Splish Brothers by First Bank is 3%. 17 Splish Brothers collected $21,200 from customers on account. 21 Splish Brothers paid $16,100 on accounts payable. 24 Splish Brothers received payment in full ($200) from Goza Company on the account written off on January 3. 27 Splish Brothers purchased supplies for $1,450 cash. 31 Splish Brothers paid other operating expenses, $3,400. Adjustment data: 1. 2. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2020, accounts receivable. A count of supplies on January 31, 2020, reveals that $400 remains unused. 3. (a) Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual system.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit (To record sales revenues.) (To record cost of goods sold.) (To record sales revenues and service charges.) (To record cost of goods sold.) (To reinstate the account previously written-off.) (To record the payment received.) (To record other operating expense.) (1) (To record interest revenue.) (2) (To record bad debt expense.) (3) (To record supplies expense.)