Sheridan Company's balance sheet at December 31, 2019, is presented below. WINTER COMPANY Balance Sheet December 31, 2019 $14,400 Accounts payable 20,800 Owner's capital $8,650 34,750 Cash Accounts receivable Allowance for doubtful accounts Inventory (800) 9,000 $43,400 $43,400 During January 2020, the following transactions occurred. Sheridan uses the perpetual inventory method. Jan. 1 Sheridan accepted a 4-month, 8% note from Merando Company in payment of Merando's $2,100 account. 3 Sheridan wrote off as uncollectible the accounts of Inwood Corporation ($400) and Goza Company ($200). 8 Sheridan purchased $18,100 of inventory on account. 11 Sheridan sold for $26,000 on account inventory that cost $17.400. 15 Sheridan sold inventory that cost $700 to Mark Lauber for $1,400. Lauber 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 $16,500 on accounts payable. 24 Sheridan received payment in full ($200) from Goza Company on the account written off on January 3. 27 Sheridan purchased supplies for $1,500 cash. 31 Sheridan paid other operating expenses, $3,200. 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, 2020, accounts receivable 3. A count of supplies on January 31, 2020, reveals that $400 remains unused. 33 CALCULATOR PRINTER VERSION BACK Bad debts are expected to be 6% of the January 31, 2020, accounts receivable. A count of supplies on January 31, 2020, reveals that $400 remains unused. repare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the berpetual system.) (Credit account titles are automatically indented when amount is entered. Do not indent manuall Date Account Titles and Explanation Debit Credit Jan. 1 Notes Receivable 2100 Accounts Receivable 2100 Jan. 3 Allowance for Doubtful Accounts Accounts Receivable Jan. 8 inventory 18100 Accounts Payable 18100 Jan. 11 Accounts Receivable 26000 Sales Revenue 26000 (To record sales revenues.) Cost of Goods Sold Jan. 11 17400 Inventory 17400 (To record cost of goods sold.) Jan. 15 Cash Service Charge Expense 1400 Sales Revenue (To record sales revenues and service charges.) Jan. 15 Cost of Goods Sold Inventory (To record cost of goods sold.) Cash