producti le-4.1 4167-bbc- 5 9 01/awessment 21ab1954 Pharoah Company Balance Sheet December 31, 2021 Cash $4,600 Accounts receivable $13,720 20,500 (780) 9,550 $42.990 Accounts payable Common stock Retained earnings Allowance for doubtful accounts 20,700 13,610 Inventory $42.990 During January 2022, the following transactions occurred. Pharoah uses the perpetual Inventory method Jan. 1 Pharoah accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $4,800 account. 3 Pharoah wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Pharoah purchased $16,380 of inventory on account 11 Pharoah sold for $25,800 on account inventory that cost $16,470. 15 Pharoah sold Inventory that cost $670 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Pharoah by First Bank is 3% 17 Pharoah collected $21,600 from customers on account 21 Pharoah paid $17.600 on accounts payable 24 Pharoah received payment in full ($300) from Drake Company on the account written off on January 3. 27 Pharoah purchased advertising supplies for $1,280 cash. 31 Pharoah paid other operating expenses, $3.260. 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 $540 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) Type here to search