Cullumber Company's balance sheet at December 31, 2021, is presented below. Cullumber Company Balance Sheet December 31, 2021 Cash $13300 Accounts payable $9520 Accounts receivable 19300 Common stock 19900 Allowance for doubtful accounts (840) Retained earnings 11430 Inventory 9090 $40850 $40850 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 $6000 account. 3 Cullumber wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300). 8 Cullumber purchased $15530 of inventory on account. 11 Cullumber sold for $26400 on account inventory that cost $17530. 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 $23600 from customers on account. 21 Cullumber paid $16130 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 $1280 cash. 31 Cullumber paid other operating expenses, $3170. 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.) Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) CULLUMBER COMPANY Adjusted Trial Balance January 31, 2022 Debit Credit | Cash 13300 $ Accounts Receivable 19300 Allowance for Doubtful Accounts 840 Inventory 9090 Notes Receivable Supplies 1280 Interest Receivable Accounts Payable 9520 Common Stock 19900 Retained Earnings 11430 Sales Revenue Interest Receivable Cost of Goods Sold Cost of Goods Sold Other Operating Expenses Service Charge Expense Service Charge Expense Totals Cullumber Company's balance sheet at December 31, 2021, is presented below. Cullumber Company Balance Sheet December 31, 2021 Cash $13300 Accounts payable $9520 Accounts receivable 19300 Common stock 19900 Allowance for doubtful accounts (840) Retained earnings 11430 Inventory 9090 $40850 $40850 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 $6000 account. 3 Cullumber wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300). 8 Cullumber purchased $15530 of inventory on account. 11 Cullumber sold for $26400 on account inventory that cost $17530. 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 $23600 from customers on account. 21 Cullumber paid $16130 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 $1280 cash. 31 Cullumber paid other operating expenses, $3170. 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.) Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) CULLUMBER COMPANY Adjusted Trial Balance January 31, 2022 Debit Credit | Cash 13300 $ Accounts Receivable 19300 Allowance for Doubtful Accounts 840 Inventory 9090 Notes Receivable Supplies 1280 Interest Receivable Accounts Payable 9520 Common Stock 19900 Retained Earnings 11430 Sales Revenue Interest Receivable Cost of Goods Sold Cost of Goods Sold Other Operating Expenses Service Charge Expense Service Charge Expense Totals
