Heather Company Ltd$.$ closes its books once a year, on December $31,$ but prepares monthly financial statements by estimating month$-$end inventories. The company's trial balance on January $31,20$x$8$ is presented below.HEATHER COMPANY LTD$.$Trial Balance January $31,20$x$8$Cash$ $11,000$Accounts Receivable$23,000$Notes Receivable$3,000$Allowance for Doubtful Accounts$ $720$Inventory, Jan. $1,20$x$824,000$Furniture and Fixtures$30,000$Accumulated Depreciation of Furniture and Fixtures$7,500$Unexpired Insurance$600$Supplies on Hand Accounts Payable$1,0506,000$Notes Payable$5,000$Common Shares$20,000$Retained Earnings$27,005$Sales$130,000$Sales Returns and Allowances$1,500$Purchases$80,000$Transportation$-$in$2,000$Selling Expenses$11,0009,000$Administrative ExpensesInterest Revenue$125$Interest Expense$200$$$196,350$$$196\mathrm{.}350$Required:$($A$)$ Prepare adjusting entries in journal form$1.$ Estimated bad debts, $0\mathrm{.}4\%$ of net sales $($sales minus sales returns, allowances, and discounts$)\mathrm{.}2.$ Depreciation of furniture and fixtures, $10\%$ of cost per year$\mathrm{.}3.$ Insurance expired in January, $$80\mathrm{.}4.$ Supplies used in January, $$210\mathrm{.}5.$ Office salaries accrued, $$500.+3$ of $3|$ D$6.$ Interest accrued on notes payable, $$200\mathrm{.}7.$ Interest received but unearned on notes receivable, $$75\mathrm{.}8.$ Estimate the January $31$ inventory and record the adjusting entry. The average gross profit earned by the company is $30\%$ of net sales. The gross profit rate equals net sales minus cost of goods sold divided by net sales.$($B$)$Prepare the following:$1.$ Open all t$-$accounts and complete your posting of journal entries into t$-$ accounts$\mathrm{.}2.$ Prepare adjusted trial balance$3.$ Prepare Statement of Financial Position$4.$ Prepare Income Statement, and$5.$ Prepare Statement of Changes in Shareholders' Equity.Dividends of $$3,000$ were declared and paid on the common shares during the month.