The account balances of ABC Company at December 31 of the previous year are as follows:

Cash	$	31,290
Accounts Receivable		13,800
Allowance for Doubtful Accounts		770
Inventories		2,500
Deferred (Unearned) Revenue (40 units)		6,400
Accounts Payable		1,650
Note Payable (long-term)		24,000
Common Stock		9,800
Retained Earnings		4,970

The additional information are:

• The company sells inventory at $160 per unit. The companys beginning inventory balance is 50 units at a total cost of $2,500. The company uses the FIFO method (perpetual inventory system).
• In December, the company received a $6,400 payment for 40 units which is to be delivered in January; this obligation was recorded in Deferred Revenue (Unearned Revenue).
• Rent of $1,340 was unpaid and recorded in Accounts Payable at December 31.
• The companys note payable matures in three years, and accrues interest at a 10% annual rate.

January Transactions

1. Included in the companys January 1 Accounts Receivable balance is a $2,400 balance due from Sultan Company. Sultan is having liquidity problems and cannot pay the $2,400 balance at this time. So, on 01/01, the company converted the $2,400 balance of accounts receivable to a six-month note, at 10% annual interest. Sultan company accepted to sign the note, which will be paid on July 1 of this year.
2. The company paid a $420 insurance premium on 01/02, covering the month of January.
3. The company purchased an additional 200 units of inventory from a supplier on account on 01/05 at a total cost of $10,000, with terms n/30.
4. The company paid freight of $400 cash on 01/05 for same-day delivery of the 200 units of inventory.
5. The 40 units that the companys customer paid for in advance in December are delivered to the customer on 01/06.
6. On 01/07, the company received allowance of $1,500 for the purchaseon account, and then paid the amount necessary to settle the balance owed to the supplier for the 1/05 purchase of inventory (in c).
7. 60 units of inventory sales made during the period of 01/0701/10 are recorded on 01/10, n/30.
8. Collected payments on 01/14 from the customers which the sales were recorded on 01/10.
9. The first 2 weeks wages totaling to $3,080 are paid on 01/16.
10. Wrote off a $880 customers account balance on 01/18. The company uses the allowance method.
11. Paid $2,680 on 01/19 for December and January rent. See the additional information above regarding the December portion. The January portion is expired.
12. The company collected $340 cash on 01/26 from the customer whose account had previously been written off on 01/18.
13. Accrued $210 utility bill for January which was received on 01/27 is due on 02/15.
14. Sales of 70 units of inventory during the period of 01/1001/28, with terms n/30, are recorded on 01/28.
15. Of the sales recorded on 01/28, 10 units are returned to the company on 01/30. The inventory is not damaged and can be resold. The company charges sales returns directly against Sales Revenue.
16. On 01/31, the company records the $3,080 employee salary that will be paid on February 1.
17. 10% of the company's accounts receivable is estimated to be uncollectible as of January end.
18. Accrue interest for January on the note payable on 01/31.
19. Accrue interest for January on Sultan Companys note on 01/31 (see a).