On November 1, 2017, Kingbird, Inc. had the following account balances. The company uses the perpetual inventory method. Debit Credit Cash $6,660 $740 2,516 Accounts Receivable 1,658 636 2,960 Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings 18,500 1,258 $27,454 14,800 5,180 $27,454 During November, the following summary transactions were completed. Nov. 8 10 11 12 15 19 20 22 Paid $2,627 for salaries due employees, of which $1,369 is for November and $1,258 is for October. Received $1,406 cash from customers in payment of account. Purchased merchandise on account from Dimas Discount Supply for $5,920, terms 2/10, n/30. Sold merchandise on account for $4,070, terms 2/10, n/30. The cost of the merchandise sold was $2,960. Received credit from Dimas Discount Supply for merchandise returned $222. Received collections in full, less discounts, from customers billed on sales of $4,070 on November 12. Paid Dimas Discount Supply in full, less discount. Received $1,702 cash for services performed in November. Purchased equipment on account $3,700. Purchased supplies on account $1,258. Paid creditors $2,220 of accounts payable due. Paid November rent $278. Paid salaries $962. Performed services on account and billed customers $518 for those services. Received $500 from customers for services to be performed in the future. 25 27 28 29 29 29 29 KINGBIRD, INC. Income Statement $ v