Oriole Company's balance sheet at December 31, 2019, is presented below. WINTER COMPANY Balance Sheet December 31, 2019 Cash $14,700 Accounts payable Accounts receivable 20,600 Owner's capital Allowance for doubtful accounts (900) Inventory 9,500 $43,900 $8,750 35,150 $43,900 During January 2020, the following transactions occurred. Oriole uses the perpetual inventory method. Jan. 1 3 8 11 15 Oriole accepted a 4-month, 8% note from Merando Company in payment of Merando's $4,200 account. Oriole wrote off as uncollectible the accounts of Inwood Corporation ($500) and Goza Company ($300). Oriole purchased $18,900 of inventory on account. Oriole sold for $26,300 on account inventory that cost $17,700. Oriole sold inventory that cost $700 to Mark Lauber for $1,100. Lauber charged this amount on his Visa First Bank card. The service fee charged Oriole by First Bank is 3%. Oriole collected $23,000 from customers on account. Oriole paid $16,000 on accounts payable. Oriole received payment in full ($300) from Goza Company on the account written off on January 3. Oriole purchased supplies for $1,450 cash. Oriole paid other operating expenses $3,300. 17 21 24 27 31 Adjustment data: 1. 2. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2020, accounts receivable. A count of supplies on January 31, 2020, reveals that $400 remains unused. 3. Date Account Titles and Explanation Debit Cre (To record sales revenues. To record cost of goods sold.) To record sales revenues and service charges.) (To record cost of goods sold) To reinstate the account previously written-off. To record the payment received (To record other operating expense. (1) (To record interest revenus.)