Ivanhoe Companys balance sheet at December 31, 2021, is presented below.

Ivanhoe Companys balance sheet at December 31, 2021, is presented below.

Ivanhoe Company Balance Sheet December 31, 2021
Cash		$13,890			Accounts payable		$8,120
Accounts receivable		19,400			Common stock		20,800
Allowance for doubtful accounts		(750)			Retained earnings		12,700
Inventory		9,080
		$41,620					$41,620

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 Bethenys $1,200 account.
3		Ivanhoe wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300).
8		Ivanhoe purchased $15,630 of inventory on account.
11		Ivanhoe sold for $25,500 on account inventory that cost $17,210.
15		Ivanhoe sold inventory that cost $730 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee charged Ivanhoe by First Bank is 3%.
17		Ivanhoe collected $21,000 from customers on account.
21		Ivanhoe paid $17,380 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 $1,420 cash.
31		Ivanhoe paid other operating expenses, $3,280.

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 $600 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.)

(You may want to set up T-accounts to determine ending balances.)