Crane Company's balance sheet at December 31, 2021, is presented below. Crane Company Balance Sheet December 31, 2021 Cash $14.040 Accounts payable $8,650 Accounts receivable 19,400 Common stock 18,500 Allowance for doubtful accounts (800) Retained earnings 15,620 Inventory 10,130 $42.770 $42.770 During January 2022, the following transactions occurred. Crane uses the perpetual inventory method. Jan. 1 Crane accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $2,400 account. 3 Crane wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($200). 8 Crane purchased $16,470 of inventory on account. 11 Crane sold for $25,600 on account inventory that cost $18,910. 15 Crane sold inventory that cost $710 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Crane by First Bank is 3%. 17 Crane collected $24,000 from customers on account. 21 Crane paid $17,660 on accounts payable. 24 Crane received payment in full ($200) from Drake Company on the account written off on January 3. 27 Crane purchased advertising supplies for $1,490 cash. 31 Crane paid other operating expenses, $3,310. 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, 2022, accounts receivable. 3. A count of advertising supplies on January 31, 2022, reveals that $520 remains unused. 4. The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.) Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.) (Round answers to 0 decimal places, e.g. 1,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 1 Notes Receivable 2400 Accounts Receivable 2400 Jan. 3 Allowance for Doubtful Accounts 600 Accounts Receivable 600 Jan. 8 Inventory 16470 Accounts Payable 16470 Jan. 11 Accounts Receivable 25600 Sales Revenue 25600 (To record sales revenues.) Jan. 11 Cost of Goods Sold 18,910 Inventory 18,910 (To record cost of goods sold.) Jan. 15 Cash 873 Service Charge Expense 27 Sales Revenue 900 (To record sales revenues and service charges.) Jan. 15 Cost of Goods Sold 710 Inventory 710 (To record cost of goods sold.) Jan. 17 Cash 24000 Accounts Receivable 24000 Jan. 21 Accounts Payable 17660 Cash 17660 Jan. 24 Accounts Receivable 200 Allowance for Doubtful Accounts 200 (To reverse allowance for doubtful debts.) Jan. 24 Cash 200 Accounts Receivable 200 (To record cash received from Drake Company.) Jan. 27 Supplies 1490 Cash 1490 Jan. 31 Other Operating Expenses 3310 Cash 3310 Jan. 31 (1) Interest Receivable 16 Jan. 31 (1) Interest Receivable 16 Interest Revenue 16 (2) Bad Debts Expense 680 Allowance for Doubtful Accounts 680 (3) Supplies Expense 970 Supplies 970 (4) Income Tax Expense 573 Income Taxes Payable 573 e Textbook and Media Assistance Used e Textbook List of Accounts CRANE COMPANY Adjusted Trial Balance January 31, 2022 Debit Credit Cash $ $ Notes Receivable 2400 Interest Receivable 16 Accounts Receivable Allowance for Doubtful Accounts Inventory Supplies 520 Accounts Payable Income Taxes Payable 573 Common Stock 18500 Retained Earnings 15620 Interest Revenue 16 Sales Revenue 26500 Cost of Goods Sold 19620 Accounts Payable Income Taxes Payable 573 Common Stock 18500 Retained Earnings 15620 Interest Revenue 16 Sales Revenue 26500 Cost of Goods Sold 19620 Service Charge Expense 27 Other Operating Expenses 3310 Bad Debts Expense 680 Supplies Expense 970 Income Tax Expense 573 Totals $