On January 1, 2017, way Software Company's general ledger contained these liability accounts: Compan Accounts payable Unearned revenue-loyalty program CPP payable El payable HST payable Income tax payable Unearned revenue Vacation pay payable $40,000 3,700 1,320 680 8,630 3,340 15,300 8,660 In January, the following selected transactions occurred: Jan. 2 Issued a $46,000, four-month, 7% note. Interest is payable at maturity. 5 Sold merchandise for $8,600 cash, plus 13% HST. The cost of this sale was $4,100 Shumway Software uses a perpetual inventory system. rovided services for customers who had paid $8,000 cash in advance. The payment included HST of $920. Paid the Receiver General (federal government) for sales taxes collected in December 2016 14 15 Paid the Receiver General for amounts owing from the December payroll for CPP EL, and income tax. 17 Paid $14,800 to creditors on account. 20 sold 1,900 units of a new product on account for $55 per unit, plus 13% HST. This new product has a one-year warranty. It is estimated that 9% of the units sold will be returned for repair at an average cost of $10 per unit. The cost of this sale was $25 per unit. During the month, provided $2,300 of services for customers who redeemed their customer loyalty rewards. Assume that HST of $265 is included in the $2,300. Issued 30,000 loyalty rewards points worth $1 each. Based on past experience, 20% of these points are expected to be redeemed. Cash sales related to the issuance of the loyalty points were $250,000. 29 31