Harriet's Hats is a fictional company. The following information includes the balance sheet as of December 31, 2013, and the details of the transactions that occurred during 2014. Background: Harriet's Hats is a hat retailer (in other words, Harriet's buys hats from a hat manufacturer and then sells them in their stores). Transactions for 2014 are representative of such a company's business activities. HINTRead through the entire assignment at least twice before beginning to do any work. This will help you familiarize yourself with all of the important facts. Required; Using the T-accounts provided, record the transactions that occurred during 2014. Prepare the balance sheetretained earnings statementand income statement for Harriets Hats, Inc. for the year ended December 31, 2014 Transactions for 2014 1. Sales and Accounts Receivable a. During 2014, each hat had a sales price of $30. All sales were made on account. B. Cash collections on account amounted to $41,000. C. During 2014, Harriets identified $350 of receivables as being uncollectible and wrote them off. d, Harriets follows a percentage-of-receivables approach to estimate its accounts receivable that will become uncollectible. As of the end of 2014, Harriets estimates that 12% of its receivables will be uncollectible 2. Inventory a Harriets began 2014 with 500 hats which had a cost of $8 each, Employees physically counted 525 hats remaining in the warehouse at the end of 2014Harriets uses a periodic LIFO inventory system to cost their inventory. The following purchases (all on accountwere made during 2014; (1) January 15 - 405 hats @ $10.00 each (2) March 23 - 310 hats @ 12.00 each (3) July 2 - 525 hats @ $14.00 each (4) October 31 - 430 hats @ 15 each D. During 2014, Harriets made cash payments to inventory suppliers totaling $21000