One Trick Pony $($OTP$)$ Incorporated and began operations near the end of the year, resulting in the following post$-$closing balances at

December $31$:

The following Information Is relevant to the first month of operations in the following year.

OTP will sell Inventory at $$130$ per unit. OTP's January $1$ Inventory balance consists of $50$ units at a total cost of $$3,500.$ OTP's policy

Is to use the FIFO method, recorded using a perpetual inventory system.

In December, OTP recelved a $$5,200$ payment for $40$ unlts OTP Is to deliver In January; this obligation was recorded in Deferred

Revenue. Rent of $$1,040$ was unpald and recorded in Accounts Payable at December $31$

OTP's notes payable mature in three years, and accrue interest at a $10\%$ annual rate.

January Transactions

a$.$ Included In OTP's January $1$ Accounts Recelvable balance is a $$3,600$ balance due from Jeff LetrotskI. Jeff Is having cash flow

problems and cannot pay the $$3,600$ balance at this time. On $01/01,$ OTP arranges with Jeff to convert the $$3,600$ balance to a slx$-$

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

b$.$ OTP pald a $$160$ insurance premlum on $\frac{01}{02},$ covering the month of January; the payment is recorded directly as an expense.

c$.$ 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$/30.$

d$.$ OTP pald a courler $$400$ cash on $\frac{01}{05}$ for same$-$day delivery of the $200$ units of Inventory.

e The $40$ units that OTP's customer pald for in advance in December are delvered to the customer on $01/06.$

$f.$ On $01/07,$ OTP recelved a purchase allowance of $$1,200$ on account, and then pald the amount necessary to settle the balance

owed to the supplier for the $\frac{1}{05}$ purchase of Inventory $($In c$).$

g$.$ Sales of $60$ units of Inventory occurring during the perlod of $01/07-01/10$ are recorded on $01/10.$ The sales terms are $\frac{n}{30}.$

h$.$ Collected payments on $\frac{01}{14}$ from sales to customers recorded on $\frac{01}{10}$

I. OTP pald the first $2$ weeks' wages to the employees on $\frac{01}{16}.$ The total pald is $$4,400$

J$.$ Wrote off a $$1,190$ customer's account balance on $01/18.$ OTP uses the allowance method, not the direct write$-$off method

$k.$ Pald $$2,080$ 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.

I. OTP recovered $$480$ cash on $01/26$ from the customer whose account had previously been written off on $01/18.$

m$.$ An unrecorded $$120$ utility bill for January arrlved on $01/27.$ It is due on $02/15$ and will be pald then.

n$.$ Sales of $70$ units of inventory during the perlod of $\frac{01}{10}-\frac{01}{28},$ with terms $\frac{n}{30},$ are recorded on $\frac{01}{28}.$

o$.$ Of the sales recorded on $01/28,10$ units are returned to OTP on $01/30.$ The inventory is not damaged and can be resold. OTP

charges sales returns to a contra$-$revenue account.

p$.$ On $01/31,$ OTP records the $$4,400$ employee salary that is owed but will be pald February $1.$

$q.$ OTP uses the aging method to estimate and adjust for uncollectible accounts on $01/31.$ All of OTP's accounts recelvable fall into a

single aging category, for which $10\%$ is estimated to be uncollectible. $($Update the balances of both relevant accounts prior to

determining the approprlate adjustment.$)$

s$.$ Accrue interest for January on the notes payable on $\frac{01}{31}$