Ivanhoe Company's balance sheet at December 31, 2021, is presented below. Ivanhoe Company Balance Sheet December 31, 2021 Cash $13,660 Accounts payable $8,010 Accounts receivable 21,700 Common stock 18,900 Allowance for doubtful accounts (750) Retained earnings 17,070 Inventory 9.370 $43.980 $43.980 During January 2022, the following transactions occurred. Ivanhoe uses the perpetual inventory method. Jan. 1 Ivanhoe accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account. 3 Ivanhoe wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Ivanhoe purchased $17.750 of inventory on account. 11 Ivanhoe sold for $27,000 on account inventory that cost $16,490. 15 Ivanhoe sold inventory that cost $680 to Jack Rice for $1.000. Rice charged this amount on his Visa Flest Bank card. The service fee charged Ivanhoe by First Bank is 3X 17 Ivanhoe collected $21,100 from customers on account. 21 Ivanhoe paid $15,660 on accounts payable. 24 Ivanhoe received payment in full ($300) from Drake Company on the account written off on January 3 27. Ivanhoe purchased advertising supplies for $1.260 cash. 31 Ivanhoe paid other operating expenses, $3.500. Adjustment data: 1. Interest is recorded for the month on the note from January 1 2. Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. 3. A count of advertising supplies on January 31, 2022, reveals that $560 remains unused. 4. The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount: round to whole dollars) Prepare journal entries for the transactions listed above and adjusting entries include entries for cost of goods sold using the perpetual inventory system) Round answers to decimal places, 1.250 Credit account titles are automatically indented when amount is entered. Do not indent manually. Record Journal entries in the order presented in the problem Date Account Titles and Explanation Debit Credit (To record sales revenues (To record cost of goods sold) To record cost of goods sold) To reverse allowance for doubtfuldebts.) to record cash received from Drake Company] MacBook Air (To reverse allowance for doubtfuldebts.) (To record cash received from Drake Company) e Textbook and Media Prepare an adjusted trial balance at January 31, 2022. (Round answers to decimal places, eg. 1,250.) IVANHOE COMPANY Adjusted Trial Balance Debit Credit MacBook Air Prepare an income statement for the month ending January 31, 2022. (Round answers to decimal places, eg. 1,250.) IVANHOE COMPANY Income Statement MacBook Air
