Comprehensive Problem 8 (Part Level Submission) Victoria Company balance sheet at December 31, 2013, is presented below VICTORIA COMPANY Balance Sheet December 31, 2013 Cash Accounts receivable Allowance for doubtful accounts Inventory $13,650 Accounts payable 21,800 Common stock $9,000 17,300 17,510 (740) Retained earnings 9,100 $43,810 $43,810 During January 2014, the following transactions occurred. Victoria uses the perpetual inventory method Victoria accepted a 4-month, 890 note from Leon Company in payment of Leon's $1,200 account. Victoria wrote off as uncollectible the accounts of Barker Corporation ($400) and Elmo Company ($200) Victoria purchased $19,390 of inventory on account. Victoria sold for $26,400 on account inventory that cost $17,840 Victoria sold inventory that cost $690 to Joe Haribo for $1,000. Haribo charged this amount on his Visa First Bank card. The service fee charged Victoria by First Bank is 390 Victoria collected $20,900 from customers on account Victoria paid $16,570 on accounts payable Victoria received payment in full ($200) from Elmo Company on the account written off on January 3 Victoria purchased advertising supplies for $1,470 cash Victoria paid other operating expenses, $3,020 Jan. 1 3 8 11 15 17 21 24 27 31