Exercise 2: Porter Corporation's balance sheet at December 31 is presented below. PORTER CORPORATION Balance Sheet December 31 Cash $13,100 Accounts payable $ 8,750 Accounts receivable 19,780 Common stock 20,000 Allowance for doubtful accounts (800) Retained earnings 12,730 Inventory 9,400 $41,480 $41,480 During January, the following transactions occurred. Porter uses the perpetual inventory method. 3 Porter wrote off as uncollectible the accounts of Elrich Corporation ($450) and Rios Company ($280). 8 Porter purchased $17.200 of inventory on account 11 Porter sold for $25,000 on account inventory that cost $17.500. 17 Porter collected $22,900 from customers on account, assuming the collection is not eligible for any discount. 21 Porter paid $16,300 on accounts payable. 24 Porter received payment in full ($280) from Rios Company on the account written off on January 3. 27 Porter purchased advertising supplies for $1.400 cash. Adjustment data: Adjustment data: 1 Bad debts are expected to be 6% of the January 31, accounts receivable 2. A count of advertising supplies on January 31, reveals that $560 remainis unused, Instructions a) You may want to set up Taccounts to determine ending balances) th) Prepare foumal entries for the transactions listed above and adjusting entries.(Include entries for cost of goods sold using the perpetual system)