Problem 4B In September, J\&J begins to sell tires and tubes, and to provide repair services. Prepare an income statement for September and a balance sheet as of September 30 (and supporting journal entries, T-Accounts, adjusting entries, inventory entries and closing entries), taking account of the following transactions. J\&J has not yet developed a computerized system to enable it to track its cost of goods sold as they are sold, and it will therefore use a periodic inventory system. On the other hand, Jill thinks it will be very easy at the end of each month to determine which tubes and tires still in inventory were bought at what times and at what costs because J\&J's supplier tags all the goods it sells to J\&J by date and price. J\&J will therefore use the specific identification method rather than any cost flow assumption. 19. (a) During the month of September, J\&J provided repair services valued at $8,400 to its customers. In the course of the month, $1,900 in services were charged, and the rest were paid in cash. (b) At the end of September, $1,600 of these charges were outstanding and $300 had been paid. 20. J\&J received $1,000 in payments from customers who charged services during August. 21. J\&J provided the promised services to the bicycle club (not included in services noted in transaction 19); at the end of the month, though, the club terminated the arrangement with J\&J because its members preferred to arrange their own repairs. (See Transaction 17, Problem 3.) 22. (a) J\&J paid Jack and Jill each a salary of $1,500 for the month; (b) it made no payment with respect to the bonuses they earned in August, but incurred an obligation to pay additional bonuses of $450 and $500, respectively. 23. J\&J established a line of credit with its supplier and purchased, for resale, additional tubes and tires at a total cost of $1,300, all paid for on credit. 24. J\&J sold $2,500 in tubes and tires during the month, $1,800 in cash and $700 on credit. 25. As part of a promotional campaign, Verizon waived J\&J's phone charges in respect of September. Finally, though not a transaction, J\&J conducted a physical inventory on September 30 and determined that it had on hand quantities of tubes and tires that had cost it a total of $1,250