Smart Touch Learning began operations on November 1. Record the business transactions for the month of November & December. Explanations are not required. Refer to the Chart of Accounts for account titles. Write the journal entries associated with each transaction.

1. Cash dividends of $2,300 were paid to stockholders on November 30. On December 1, purchased inventory on account totalling $9,000 and recorded it into their perpetual inventory system. Terms are 2/10, n 30 and recorded under the gross method.

2. On December 2, a customer signs a contract to buy an equipment and service plan bundle with cash. The equipment normally sells for $270 and is bundled with an 18-month service plan, which usually sells for $50 per month. The price for the bundle is $1030 and the cost of the equipment to Smart Touch is $180. Smart Touch uses the perpetual inventory method and a relative sales value basis approach to allocate revenue between the equiment and the service plan. Round intermediary values to one decimal place and round final values to the nearest whole dollar.

3. On December 7, Smart Touch delivers equipment to a small retailer on consignment. The cost of the equipment was $1,480 and the combined retail selling price is $2,000. If the retail shop sells the equipment, Smart Touch will pay 20% commission. Both companies use a perpetual inventory method.

4. On December 10, Smart Touch receives notification that APA Corp. from the November 21st transaction has gone out of business. Smart Touch estimates $4,100 allowance for uncollectible accounts and the bad debt expense, assuming that the company will not pay their balance owed.

5. On December 10, paid for inventory purchased on December 1. On December 28, received notification that the consignee sold the inventory that was delivered on December 7.

6. On December 31, determined that APA will not be paying their outstanding balance. Wrote off the total amount of bad debt from APA Corp.

7. Issued a bond on December 31 with a face value of $53,000 at a stated annual interest rate of 5% and a market annual interest rate of 8%. The bonds mature in 10 years and interest is paid annually at the end of the period. Round all balances to the nearest whole dollar.