Pertinent items of general info innin Balances from 1/31/12 Accounts REeivable Allowance for Doubtful Accounts I vento 40 units $23 120 SII.420 700 $3 000 Unearned Revenue 28 units Accounts pa able Jan Rent Notes Pa able Contributed Ca ital -Feb 1.2012 Retained Earni $5,012 $1,150 518.000 9,200 $4,478 WWC establishes a that it will sell inventory at $179 per unit 'n January, WWC received a $5,012 advance for 28 units, as reflected in Unearned Revenue. WWC's February 1 inventory balance consisted of 40 units at a total cost of $3,000 WWC's note payable accrues interest at a annual rate WWC will use the FIFO inventory rrEtha3 and record COGS on a perpetual basis. FebruawTr.nsaction. 02/01 02/02 021)5 02/05 02/10 InclL'ded in WWC's February 1 Accounts Receivable balance is a $4,000 account due from Kit Kat, a WWC customer, Kit Kat is hawlg cash flow problems and cannot its balance at this tinu WWC arranges with Kit Kat to convert the S4.000 balance toa note, and Kit Kat signs a a-month note, at 15% annual interest. The principal and all interest will be due and payable to WWC on August 1 , 2012. WWC paid a $250 insurance prenum covering the month of February, The arnount paid is recorded directly as an expense. An additonal 1 iSinits of inventory are purchased on account by WWC for $9,109 tgrrns 2115, n30. WWC paid Federal Express $350 to have the 175 units of inventory delivered overnight. Delivery xcurred on 02.06 Sales of 1 20 units of inventory occurred during the of 02107 02/10. The sales terms are 2110, net 30.