HEC Company's balance sheet on December 31, 2022, is presented below: Inventory Total Assets: Cash $ 11,875.00 $ 19,780.00 Accounts receivable Less: Allowance for foubtful accounts $ 800.00 $ 9,400.00 $ 40,255.00 5 7 Assets HEC Company Total Liability & Equity $40,255.00 During January 2023, the following transactions occurred. HEC uses the perpetual inventory method. 27 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%. HEC collected $24,900 from customers on account. 31 Liability and Equity Instructions: Accounts payable Common Stock Retained Earnings $ 8,750.00 $ 20,000.00 $ 11,505.00 17 24 HEC received payment in full from Gordon Company on the account written off on January 5. HEC purchased supplies for $1,500 cash. 30 HEC Purchased $12,000 worth of inventory on account. HEC paid other operating expenses, $3,920. 31 Bad debts Balance are expected to be 10% of the January 31, 2023, accounts receivable. (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.

HEC Company's balance sheet on December 31, 2022, is presented below: During January 2023, the following transactions occurred. HEC uses the perpetaal inventory method. Jan. 1 HEC Company sells merchandise on account for $8,500 to Lanans Conpany 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. 5 HEC wrote off as uncollectible the accounts of llamac $830 and Gordon Company 5380 . 7 HEC sold for $28,000 on accowint inventory that cost $19,600. 10 HEC sold inventory that cost $900 to Alex Bonn for $1,900. Bonn charged this anount on his Visa Infinite Card. The service fee charged HEC by the Bantk is 3%. 17 HEC collected $24,900 from customers on account. 24 HEC received pasment in full from Gordon Company ow the account written off on January 5. 27 HEC purchased supplies for $1,500 cash. 30 HEC Purchased $12,000 worth of imventony an account. 31 HEC paid other operating capenses, 53.920 . 31 Bad debts Balance are expected to be 105 of the Jamuary 31. 2023, accoumts receivable. Instructions: (a) Prepare joumal entries for the transactions listed above Anclude entries for cost of goods sold using the perpetual system.j (b) What is the net realizable value of the receivables at the ent of the period? (c) Prepare a trial halance at January 31, 2023. (d) Prepare an income statement and a retained eurnings statcment for the month ending January 31, 2023, and a bulance sheet as of January 31, 2023