PLEASE KINDLY FIX MY ERRORS

Project 2: Review of Merchandising Cycle [The following information applies to the questions displayed below. Wally's Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012 WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: $5,150 $ 2,900 14,000 $ 6,600 Retained Earnings Feb 1, 2012 6,120 $ 21,020 Unearned Revenue (35 units) $12,050 Accounts Payable (Jan Rent) Cash Accounts Receivable Allowance for Doubtful Accounts 1700) Notes Payable Inventory (40 units) $ 3,400 Contributed Capital WWC establishes a policy that it will sell inventory at $150 per unit. In January, WWC received a $5,150 advance for 35 units, as reflected in Unearned Revenue WWC's February 1 inventory balance consisted of 40 units at a total cost of $3,400. . wwC's note payable accrues interest at a 12% annual rate WWC will use the FIFO inventory method and record COGS on a perpetual basis. February Transactions 02/01 Included in WWC's February 1 Accounts Receivable balance is a $1,400 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,400 balance to a note, and Kit Kat signs a 6-month note, at 9% annual interest. The principal and all interest will be due and payable to wwc on August 1, 2012. 02/02 WWC paid a $850 insurance premium covering the month of February. The amount paid is recorded directly as an expense 02/05 An additional 200 units of inventory are purchased on account by WWC for $15,000-terms 2/15, n30. 02/05 wWC paid Federal Express $600 to have the 200 units of inventory delivered overnight. Delivery occurred on 02/06 02/10 Sales of 170 units of inventory occurred during the period of 02/07-02/10. The sales terms are 2/10, net 30