HEC Company's balance sheet on December $31,2022,$ is presented below:

During January $2023,$ the following transactions occurred. HEC uses the perpetual inventory

method.

Jan. $1$ HEC Company sells merchandise on account for $$8,500$ to Lorans Company with

credit terms of $\frac{3}{10},\frac{n}{60}.$ Lorans Company returns $$1000$ of merchandise that was

damaged, along with a check to settle the account within the discount period.

$5$ HEC wrote off as uncollectible the accounts of Ilamac $$830$ and GordonCompany $$380.$

$7$ HEC sold for $$28,000$ on account inventory that cost $$19,600.$

$10$ HEC sold inventory that cost $$900$ to Alex Bonn for $$1,900.$ Bonn charged this

amount on his Visa Infinite Card. The service fee charged HEC by the Bank is $3\%.$

$17$ HEC collected $$24,900$ from customers on account.

$24$ HEC received payment in full from Gordon Company on the account written off on

January $5.$

$27$ HEC purchased supplies for $$1,500$ cash.

$30$ HEC Purchased $$12,000$ worth of inventory on account.

$31$ HEC paid other operating expenses, $$3,920.$

$31$ Bad debts Balance are expected to be $10\%$ of the January $31,2023,$ accounts receivable.

Instructions:

$($a$)$ Prepare journal entries for the transactions listed above $($Include entries for cost of goods

sold using the perpetual system.$)$

$($b$)$ What is the net realizable value of the receivables at the end of the period?

$($c$)$ Prepare a trial balance at January $31,2023.$

$($d$)$ Prepare an income statement and a retained earnings statement for the month ending

January $31,2023,$ and a balance sheet as of January $31,2023.$