Issues 1,800 shares of common stock ($4 par) at $90/share

Purchased a delivery truck for $60,000 by issuing a 5-year, 6% note payable. Truck has a useful life of 10 years and no salvage value.

Purchasd inventory of $111,800 (520 windows at $215) with cash.

Purchased inventory of $11,700 (65 windows at $180) with cash.

Sold $115,200 of inventory (320 windows at $360) on account.

COGS using LIFO $66,525

Estimates that 10% of windows will have problems, costing $90 each to fix.

Estimates that 5% of its credit sales (on account) will never be collectible.

Write off uncollectable account (A/R) for two windows due to customers bankrupcy

Pays $450 ($75 for 6 windows) in repairs for Lanes Bowling Alley under warranty.

Records interest related to Jan. 1st note payable

Records straight line depreciation for the delivery truck purchased on Jan. 1st