"Sales Revenue" is incorrect on journal entry 20.

One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the following post-closing balances at December 31: The following information is relevant to the first month of operations in the following year: - OTP will sell inventory at $145 per unit. OTP's January 1 inventory balance consists of 35 units at a total cost of $2,800. OTP's policy is to use the FIFO method, recorded using a perpetual inventory system. - In December, OTP recelved a $4,350 payment for 30 units OTP is to deliver in January; this obligation was recorded in Deferred Revenue. Rent of $1,300 was unpaid and recorded in Accounts Payable at December 31. - OTP's notes payable mature in three years, and accrue interest at a 10% annual rate. January Transactions a. Included in OTP's January 1 Accounts Recelvable balance is a $1,500 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $1,500 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,500 balance to a sixmonth note, at 12% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of this year. b. OTP paid a $500 insurance premium on 01/02, covering the month of January; the payment is recorded directly as an expense. c. OTP purchased an additional 150 units of inventory from a supplier on account on 01/05 at a total cost of $9,000, with terms n/30. d. OTP paid a courier $300 cash on 01/05 for same-day delivery of the 150 units of inventory. e. The 30 units that OTP's customer paid for in advance in December are delivered to the customer on 01/06. f. On 01/07, OTP received a purchase allowance of $1,350 on account, and then paid the amount necessary to settie the balance owed to the supplier for the 1/05 purchase of inventory (in c). g. Sales of 40 units of inventory occurring during the period of 01/0701/10 are recorded on 01/10. The sales terms are n/30. h. Collected payments on 01/14 from sales to customers recorded on 01/10. 1 OTP paid the first 2 weeks' wages to the employees on 01/16. The total paid is $2,200. j. Wrote off a $1,000 customer's account balance on 01/8. OTP uses the allowance method, not the direct write-off method. k. Paid $2,600 on 01/19 for December and January rent. See the earlier bullets regarding the December.portion. The January portion will expire soon, so it is charged directly to expense. 1. OTP recovered $400 cash on 01/26 from the customer whose account had previously been written off on 01/18. m. An unrecorded $400 utlity bill for January arrived on 01/27. It is due on 02/15 and will be paid then. n. Sales of 65 units of inventory during the period of 01/1001/28, with terms n/30, are recorded on 01/28. 0 . Of the sales recorded on 01/28, 15 units are returned to OTP on 01/30. The inventory is not damaged and can be resold. OTP charges sales returns to a contra-revenue account. p. On 01/31, OTP records the $2,200 employee salary that is owed but will be paid February 1. q. OTP uses the aging method to estimate and adjust for uncollectible accounts on 01/31. All of OTP's accounts recelvable fall into a single aging category, for which 8% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to determining the appropriate adjustment.) r. Accrue interest for January on the notes payable on 01/31. s. Accrue interest for January on Jeff Letrotski's note on 01/31 (see a). Journal entry worksheet 1) ,18 Of the sales recorded on 01/28,15 units are returned to OTP on 01/30. The inventory is not damaged and can be resold. OTP charges sales returns to a contra-revenue account. Record the sales return transaction. Note: Enter debits before credits