Pina Colada Company's balance sheet at December 31, 2021, is presented as follows. PINA COLADA COMPANY Balance Sheet December 31, 2021 Cash $13,100 Accounts payable $8,000 Accounts receivable 20,500 Common stock 20,000 Allowance for doubtful accounts (700 ) Retained earnings 13,600 Inventory 8,700 $41,600 $41,600 During January 2022, the following transactions occurred. Pina Colada uses the perpetual inventory method. Jan. Pina Colada accepted a 4-month, 8% note from Merando Company in payment of Merando's $1,200 account. 1 3 Pina Colada wrote off as uncollectible the accounts of Inwood Corporation ($500) and Goza Company ($300). 8 Pina Colada purchased $17,300 of inventory on account. 11 Pina Colada sold for $28,700 on account inventory that cost $20,400. 15 Pina Colada sold inventory that cost $600 to Mark Lauber for $1,100. Lauber charged this amount on his Visa First Bank card. The service fee charged Pina Colada by First Bank is 3%. 17 Pina Colada collected $22,500 from customers on account. 21 Pina Colada paid $14,600 on accounts payable.