Sandhill Co.uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledgers for Sandhill are indicated in the working papers presented below. Also following are a series of transactions for Sandhill Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 60% of the sales price. GENERAL LEDGER Account Number Account Title January 1 Opening Balance 101 Cash $32.250 112 Accounts Receivable 12.300 115 Notes Receivable 39,000 120 Inventory 20,000 126 Supplies 1,700 1,500 130 Prepaid Insurance 6,900 157 Equipment 158 Accumulated Depreciation-Equip. 1,600 34,000 201 Accounts Payable 78,050 301 Owner's Capital