Comprehensive Problem 8 (Part Level Submission) Winter Company's balance sheet at December 31, 2016, is presented below WINTER COMPANY Balance Sheet December 31, 2016 Cash Accounts receivable Allowance for doubtful accounts Inventory $8,900 20,000 12,800 $13,500 Accounts payable 19,500 Common stock (800) Retained earnings 9,500 $41,700 During January 2017, the following transactions occurred. Winter uses the perpetual inventory method Jan. 1 Winter accepted a 4-month, 8% note from Merando Company in payment of Merando's $4,200 account. Winter wrote off as uncollectible the accounts of Inwood Corporation ($300) and Goza Company ($200) 3 8 Winter purchased $18,800 of inventory on account. 11 Winter sold for $25,300 on account inventory that cost $17,300 15 Winter sold inventory that cost $700 to Mark Lauber for $1,100. Lauber charged this amount on his Visa First Bank card. The service fee charged winter by First Bank is 3% 17 Winter collected $21,600 from customers on account. 21 Winter paid $16,400 on accounts payable 24 Winter received payment in full ($200) from Goza Company on the account written off on January 3 27 Winter purchased supplies for $1,500 caslh 31 Winter paid other operating expenses, $3,500 Adjustment data: 1. 2. 3. Interest is recorded for the month on the note from January1 Bad debts are expected to be 6% of the January 31, 2017, accounts receivable. A count of supplies on January 31, 2017, reveals that $600 remains unused