Sheridan Company's balance sheet at December $31,2021,$ is presented below. when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.$)$

Account Titles and Explanation

$($To record sales revenues.$)$

$($To record cost of goods sold.$)$

$($To record sales revenues and service charges.$)($To record cost of goods sold.$)$

$[$

$$

$($To reverse allowance for doubtful debts.$)$

$($To record cash received from Drake Company.$)$

$(1)$

$(2)$

$(3)$

$(4)$

$]$

$]$

$]$

$(\frac{}{1})$

L Prepare an adjusted trial balance at January $31,2022.($Round answers to $0$ decimal places, e$.$g$.1,250.)$

SHERIDAN COMPANY

Adjusted Trial Balance

During January $2022,$ the following transactions occurred. Sheridan uses the perpetual inventory method.

Jan.

$1$

Sheridan accepted a $4-$month, $8\%$ note from Betheny Company in payment of Betheny's $$3,600$ account.

$3$ Sheridan wrote off as uncollectible the accounts of Walter Corporation $($$$400)$ and Drake Company $($$$200).$

$8$ Sheridan purchased $$18,870$ of inventory on account.

$11$ Sheridan sold for $$24,200$ on account inventory that cost $$15,790.$

$15$ Sheridan sold inventory that cost $$760$ to Jack Rice for $$1,000.$ Rice charged this amount on his Visa First Bank card. The

service fee charged Sheridan by First Bank is $3\%.$

$17$ Sheridan collected $$20,900$ from customers on account.

$21$ Sheridan paid $$15,300$ on accounts payable.

$24$ Sheridan received payment in full $($$$200)$ from Drake Company on the account written off on January $3.$

$27$ Sheridan purchased advertising supplies for $$1,290$ cash.

$31$ Sheridan paid other operating expenses, $$2,940.$

Adjustment data:

Interest is recorded for the month on the note from January $1.$

Bad debts are expected to be $6\%$ of the January $31,2022,$ accounts receivable.

A count of advertising supplies on January $31,2022,$ reveals that $$610$ remains unused.

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.$)$

$($You may want to set up T$-$accounts to determine ending balances.$)$