Porter companys balance sheet at December 31, 2011 has following accounts: Cash 2000$; account payable 3000$; account receivable 2000$; inventory 1500$; allowance for doubtful accounts 1000$ (credited); Owners capital 1500$.

a) On January 1, Porter Company factors $600,000 of receivables to Federal Factors. Federal Factors assesses a service charge of 2 % of the amount receivables sold. Make a record

b) On February 1, Porter Company purchases $1,000 of compact discs for its restaurant from Karen Kerr Music Co. using her Visa First Bank Card. Bank charges a services fee of 3 %. Make a record

c) Porter Company on July 1, 2012 sells merchandise on account to Polo Company for $1,000, terms 2/10, n/30. On July 5, Polo returns merchandise worth $100 to Porter Company. On July 11, Porter Company receives payment from Polo Company for the balance due. Make a record

d) Porter Company lends Highley Co. $10,000 on August 1, accepting a five-month, 9 % interest note. If Porter Company presents the note to Highley Co. on November 1, what is the maturity date Porter Companys entry to record the collection?

e) Journalize following transactions:

a) Porter Company has credit sales of $1,200,000 in 2011. If this amount, $200,000 remains uncollected at December 31. The credit manager estimates that $12,000 of these sales will be uncollectible

b) Financial vice president of Porter Company authorizes a write-off the $500 balance owed by Rudolfinum on September 1, 2012

c) On November 1, Rudolfinum pays the $500 amount that Porter Company had written off on September 1, 2012.

Prepare the Balance Sheet and Income Statement of Porter Company.