please help with the red ones
Cullumber Company's balance sheet at December 31, 2021, is presented below. Cullumber Company Balance Sheet December 31, 2021 Cash $13,450 Accounts payable $8,510 Accounts receivable 20,700 Common stock 21,300 Allowance for doubtful accounts (840) Retained earnings 13,190 Inventory 9,690 $43,000 $43.000 During January 2022, the following transactions occurred. Cullumber uses the perpetual inventory method. Jan. 1 Cullumber accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account. 3 Cullumber wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Cullumber purchased $17,710 of inventory on account. 11 Cullumber sold for $26,300 on account inventory that cost $18,930. 15 Cullumber sold inventory that cost $630 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee charged Cullumber by First Bank is 3%. 17 Cullumber collected $25,000 from customers on account. 21 Cullumber paid $17,830 on accounts payable. 24 Cullumber received payment in full ($300) from Drake Company on the account written off on January 3. 27 Cullumber purchased advertising supplies for $1,530 cash. 31 Cullumber paid other operating expenses, $3,390. Adjustment data: 1. Interest is recorded for the month on the note from January 1. 2. Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. 3. A count of advertising supplies on January 31, 2022 reveals that $520 remains unused. 4. The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.) (You may want to set up T-accounts to determine ending balances.) - Your answer is partially correct. Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.) (Round answers to O decimal places, e.g. 1,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 1 Notes Receivable 3,600 Accounts Receivable 3,600 Jan. 3 Jan. 3 ) Allowance for Doubtful Accounts Allowance for Doubtful Account Accounts Receivable 800 Jan. 8 Inventory 17,710 Accounts Payable 17,710 Jan. 11 Accounts Receivable 26,300 Sales Revenue 26,300 (To record sales revenues.) Jan. 11 Cost of Goods Sold 18,930 Inventory 18,930 (To record cost of goods sold.) Jan. 15 Cash 1067 1067 Service Charge Expense Sales Revenue 1100 L 1100 (To record sales revenues and service charges.) Jan. 15 Cost of Goods Sold 630 Inventory 630 (To record cost of goods sold.) Jan. 17 Cash C 25.000 25,000 Accounts Receivable 25,000 Jan. 21 Accounts Payable 17,830 Cash 17,830 Jan. 24 Accounts Receivable 300 Allowance for Doubtful Accounts (To reverse allowance for doubtful debts.) Jan. 24 - Cash 300 Accounts Receivable 300 (To record cash received from Drake Company.) Jan. 27 Supplies 1,530 Cash 1,530 Jan. 31 Jan. 31 Other Operating Expenses 3,390 Other Operating Expenses Cash Interest Receivable Cash C 3,990 C 24 3 ,390 Jan. 31 ^ (1) Jan. 31 Other Operating Expenses 3,390 Cash 3,390 Jan. 31 Interest Receivable Interest Revenue Bad Debts Expense 725 Allowance for Doubtful Accounts 725 (3) Supplies Expense 1010 Supplies 1010 Income Tax Expense 805 Income Taxes Payable 805
