cP8 Madson Corporation's balance sheet at December 31, 2013, is presented below. MAD SON CORPORATION Balance Sheet December 31, 2013 $13,100 Accounts payable 8,750 Cash 19,780 Common stock Accounts receivable 20,000 Allowance for doubtful accounts (800) Retained earnings 12,730 Inventory 9,400 $41,480 $41,480 During January 2014, the following transactions occurred. Madson uses the perpetual inventory method. Jan. 1 Madson accepted a 4-month, 8% note from Matheny Company in payment of Matheny's $1,200 account 3 Madson wrote off as uncollectible the accounts of Payton Corporation ($450) and Cruz Company ($280) 8 Madson purchased $17,200 of inventory on account 11 Madson sold for $25,000 on account inventory that cost $17,500 15 Madson sold inventory that cost $700 to Rich Jenson for $1,000. Jenson charged this amount on his Visa First Bank card. The service fee charged Madson by First Bank is 3% 17 Madson collected $22,900 from customers on account. 21 Madson paid $16,300 on accounts payable 24 Madson received payment in full ($280) from Cruz Company on the account written off on January 3 27 Madson purchased advertising supplies for $1,400 cash. 31 Madson paid other operating expenses, $3,218