Sheridan Company's balance sheet at December 31, 2021, is presented below. $8.550 Sheridan Company Balance Sheet December 31, 2021 Cash $13.270 Accounts payable Accounts receivable 19.200 Common stock Allowance for doubtful accounts (750) Retained earnings Inventory 9.030 $40.750 19.500 12,700 $40.750 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 ($500) and Drake Company ($300). 8 Sheridan purchased $15.580 of inventory on account 11 Sheridan sold for $26,200 on account inventory that cost $18,800 15 Sheridan sold inventory that cost $700 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Sheridan by First Bank is 3% 17 Sheridan collected $20,800 from customers on account. 21 Sheridan paid $15.640 on accounts payable. 24 Sheridan received payment in full ($300) from Drake Company on the account written off on January 3, 27 Sheridan purchased advertising supplies for $1.270 cash 31 Sheridan paid other operating expenses $2,900. 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 $520 remains unused. 4. The income tax rate is 30%. (HintPrepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.) Prepare journal entries for the transactions listed above and adjusting entries. Include entries for cost of goods sold using the perpetual inventory system) (Round answers to decimal places, es 1.250. Credit account titles are automatically Indented when amount is entered Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record sales revenues) To record cost of goods sold) DRM (To record cost of goods sold.) (To record sales revenues and service charges.) (To record cost of goods sold.) (To reverse allowance for doubtfuldebts.) (To record cash received from Drake Company.) (To record cash received from Drake Company) (1) (2) (3) (4) Prepare an adjusted trial balance at January 31, 2022. Round answers to decimal places 1250) SHERIDAN COMPANY Adjusted Trial Balance Debit Credit Totals Prepare an income statement for the month ending January 31, 2022. (Round answers to decimal places es 1250.) SHERIDAN COMPANY Income Statement > $ Prepare a retained earnings statement for the month ending January 31 2022. Round answers to decimal places, es 1250.) SHERIDAN COMPANY Retained Earnings Statement : eTextbook and Media List of Accounts Prepare a classified balance sheet as of January 31, 2022. List Current Assets in order of liquidity. Round answers to decimal places, eg. 1250) SHERIDAN COMPANY Balance Sheet Assets $ Assets $ Liabilities and Stockholders' Equity