Comprehensive Problem 9 (Part Level Submission) Winter Companys balance sheet at December 31, 2016, is presented below.

WINTER COMPANY Balance Sheet December 31, 2016:

Cash $13,600 Accounts payable $8,850

Accounts receivable 21,000 Owners capital 34,050

Allowance for doubtful accounts (900 )

Inventory 9,200

$42,900 $42,900

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 Merandos $5,100 account.

3 Winter wrote off as uncollectible the accounts of Inwood Corporation ($300) and Goza Company ($100).

8 Winter purchased $19,800 of inventory on account.

11 Winter sold for $27,900 on account inventory that cost $17,800.

15 Winter sold inventory that cost $600 to Mark Lauber for $1,500. Lauber charged this amount on his Visa First Bank card. The service fee charged Winter by First Bank is 3%.

17 Winter collected $21,800 from customers on account.

21 Winter paid $16,300 on accounts payable.

24 Winter received payment in full ($100) from Goza Company on the account written off on January 3.

27 Winter purchased supplies for $1,500 cash. 31 Winter paid other operating expenses, $3,000.

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, 2017, accounts receivable.

3. A count of supplies on January 31, 2017, reveals that $600 remains unused.

a.) Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual system.)