Cullumber Company's balance sheet at December 31, 2019, is presented below. CULLUMBER COMPANY Balance Sheet December 31, 2019 Inventory 9,000 Share Capital-ordinary 20,000 Accounts receivable 21,900 Retained earnings 14,400 Allowance for doubtful accounts (700) Accounts payable 8,900 Cash 13,100 43,300 43,300 During January 2020, the following transactions occurred. Cullumber uses the perpetual inventory method. Jan. 1 Cullumber accepted a 4-month, 8% note from Merando Company in payment of Merando's 5,100 account. 3 Cullumber wrote off as uncollectible the accounts of Inwood Corporation (400) and Goza Company (200). 8 11 15 Cullumber purchased 17,200 of inventory on account. Cullumber sold for 27,900 on account inventory that cost 17,700. Cullumber sold inventory that cost 600 to Mark Lauber for 1,100. Lauber charged this amount on his Visa First Bank card. The service fee charged Cullumber by First Bank is 3%. Cullumber collected 22,700 from customers on account. 17 21 Cullumber paid 16,400 on accounts payable. 24 Cullumber received payment in full (200) from Goza Company on the account written off on January 3. 27 Cullumber purchased supplies for 1,400 cash. Cullumber paid other operating expenses, 3,300. 31 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, 2020, accounts receivable. 3. A count of supplies on January 31, 2020, reveals that 400 remains unused. Date Account Titles and Explanation Debit Credit (To record sales revenues.) (To record cost of goods sold.) (To record sales revenues and service charges.) (To record cost of goods sold.)