Journal entry worksheet 1) Included in OTP's January 1 Accounts Receivable balance is a $1,200 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $1,200 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,200 balance to a six-month note, at 10% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of this year. Record the transaction. January 1 2) OTP paid a $380 insurance premium on 01/02, covering the month of January; the payment is recorded directly as an expense. Record the transaction. January 2 3) OTP purchased an additional 200 units of inventory from a supplier on account on 01/05 at a total cost of $8,000, with terms n/30. Record the transaction. January 5 4) OTP paid a courier $400 cash on 01/05 for same-day delivery of the 200 units of inventory. Record the transaction. January 5 5) The 40 units that OTP's customer paid for in advance in December are delivered to the customer on 01/06. Record the sales transaction. January 6 6) The 40 units that OTP's customer paid for in advance in December are delivered to the customer on 01/06. Record the cost of the units sold. January 6 7) On 01/07, OTP received a purchase allowance of $1,200 on account. Record the transaction. January 7 8) On 01/07, OTP paid the amount necessary to settle the balance owed to the supplier for the 1/05 purchase of inventory (in c). Record the transaction. January 7 9) Sales of 60 units of inventory occurring during the period of 01/07-01/10 are recorded on 01/10. The sales terms are n/30. Record the sales transaction. January 10 10) Sales of 60 units of inventory occurring during the period of 01/07-01/10 are recorded on 01/10. The sales terms are n/30. Record the cost of the units sold. January 10 11) Collected payments on 01/14 from sales to customers recorded on 01/10. Record the transaction. January 14 12) OTP paid the first 2 weeks' wages to the employees on 01/16. The total paid is $3,390. Record the transaction. January 16 13) Wrote off a $1,030 customer's account balance on 01/18. OTP uses the allowance method, not the direct write-off method. Record the transaction. January 18 Paid $2,920 on 01/19 for December and January rent. See the earlier bullets regarding the December portion. The January portion will expire soon, so it is charged directly to expense. Record the transaction. January 19 14) 15)OTP recovered $320 cash on 01/26 from the customer whose account had previously been written off on 01/18. Record the transaction to restore the account. January 26 16)OTP recovered $320 cash on 01/26 from the customer whose account had previously been written off on 01/18. Record the collection of the amount due. January 26 17) An unrecorded $190 utility bill for January arrived on 01/27. It is due on 02/15 and will be paid then. Record the transaction. January 27 18) Sales of 70 units of inventory during the period of 01/10-01/28, with terms n/30, are recorded on 01/28. Record the sales transaction. JANRUARY 28 19) Sales of 70 units of inventory during the period of 01/10-01/28, with terms n/30, are recorded on 01/28. Record the cost of the units sold. January 28