HEC Company's balance sheet on December 31, 2022, is presented below: Inventory Total Assets: Cash Accounts receivable Less: Allowance for foubtful accounts $ 5 Assets 7 HEC Company $ 11,875.00 $ 19,780.00 800.00 $ 9,400.00 $ 40,255.00 27 Total Liability & Equity $40,255.00 During January 2023, the following transactions occurred. HEC uses the perpetual inventory method. Instructions. Liability and Equity Jan. 1 HEC Company sells merchandise on account for $8,500 to Lorans Company with credit terms of 3/10, n/60. Lorans Company returns $1000 of merchandise that was damaged, along with a check to settle the account within the discount period. HEC wrote off as uncollectible the accounts of Ilamac $830 and Gordon Company $380. 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. Accounts payable Common Stock Retained Earnings $ 8,750.00 $ 20,000.00 $ 11,505.00 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. (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.

HEC Company's balance sheet on December 3I, 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 3/10,n/60. Lorans Company returns $1000 of merchandise that was damaged, along with a check to settle the account within the discoumt 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. (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