Cullumber Company's balance sheet at December 31, 2021, is presented below. Cullumber Company Balance Sheet December 31, 2021 Cash $13,300 Accounts payable $9,520 Accounts receivable 19,300 Common stock 19,900 Allowance for doubtful accounts (840) Retained earnings 11,430 Inventory 9,090 $40,850 $40,850 During January 2022, the following transactions occurred. Cullumber uses the perpetual inventory method. Jan. 1 Cullumber accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $6,000 account. 3 Cullumber wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300). 8 Cullumber purchased $15,530 of inventory on account. 11 Cullumber sold for $26,400 on account inventory that cost $17,530. 15 Cullumber sold inventory that cost $720 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Cullumber by First Bank is 3%. 17 Cullumber collected $23,600 from customers on account. 21 Cullumber paid $16,130 on accounts payable. 24 Cullumber received payment in full ($300) from Drake Company on the account written off on January 3. 27 Cullumber purchased advertising supplies for $1,280 cash. 31 Cullumber paid other operating expenses, $3,170. Adjustment data: 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 $540 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.) (You may want to set up T-accounts to determine ending balances.) - Your answer is partially correct. 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, eg. 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. 14 Notes Receivable 6000 Accounts Receivable 6000 Jan. 3 - Allowance for Doubtful Accounts 700 Accounts Receivable 700 Jane Inventory 15530 Jan. 8 Inventory 15530 Accounts Payable 15530 Jan. 114 Accounts Receivable 26400 Sales Revenue 26400 (To record sales revenues.) Jan. 11 8 Cost of Goods Sold 17530 Inventory 17530 (To record cost of goods sold.) Jan. 15 Cash 873 Service Charge Expense 27 C Sales Revenue 200 900 (To record sales revenues and service charges.) Jan. 15 Cost of Goods Sold Inventory 720 (To record cost of goods sold.) Jan. 174 Cash 23600 Accounts Receivable 23600 Jan 21 8 Accounts Payable 16130 Cash 16130 Jan. 24 Accounts Receivable 300 Allowance for Doubtful Accounts 300 (To reverse allowance for doubtful debts.) Jan. 24 4 Cash 3001 300 Accounts Receivable 300 300 (To record cash received from Drake Company.) Jan 27 Supplies 1290 1280 Cash Other Operating Exper Jan. 31 ) 3170 Cash 3170 Jan. 31 (1) Interest Receivable 40 Interest Revenue (2) Bad Debts Expense 1084 Allowance for Doubtful Accounts 1084 (3) Supplies Expense Supplies 740 (4) Income Tax Expense Income Taxes Payable 1221 eTextbook and Media List of Accounts - Your answer is partially correct. Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, eg. 1,250.) CULLUMBER COMPANY Adjusted Trial Balance January 31, 2022 Debit Credit Cash 13300 $ Accounts Receivable Allowance for Doubtful Accounts Inventory Notes Receivable 6000 Supplies Interest Receivable Common Stock Sales Revenue Cost of Goods Sold Cost of Goods Sold Other Operating Expenses Totals e Textbook and Media List of Accounts X Your answer is incorrect. Prepare an income statement for the month ending January 31, 2022. (Round answers to O decimal places, e.g. 1,250.) CULLUMBER COMPANY Income Statement e Textbook and Media List of Accounts - Your answer is partially correct. Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to decimal places, e.g. 1,250.) CULLUMBER COMPANY Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to decimal places, eg. 1,250.) CULLUMBER COMPANY Retained Earnings Statement January 31, 2022 Dividends Add : Expenses Dividends e Textbook and Media List of Accounts - Your answer is partially correct. Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to 0 decimal places, e.g. 1,250.) CULLUMBER COMPANY Balance Sheet January 31, 2022 Assets Long-term Investments Long-term Investments Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity eTextbook and Media List of Accounts Attempts: 4 of 10 used Save for Later Submit Answer