The trail balance of Prudential Security Service as of January 1, Year 3, had the following normal balances: Cash $ 75,000 Account Receivable 35,000 Allowance for doubtful account (2,000) Supplies 160 Merchandise Inventory (23 @ $210) 4,830 Land 4,200 Account Payable 900 Salaries Payable 1,500 Common Stock 45,000 Retained Earnings 69,790 During Year 3, Prudential Security Service experienced the following transactions: 1. Paid the salaries payable from Year 2. 2. On January 18, purchased 22 standard alarm systems for resale at a cost of $230 each. The alarm systems were purchased on account with the terms 2/10, n/30. 3. The goods that were purchased in Event 2 were delivered FOB shipping point. Freight cost of $110 were paid in cash by the responsible party. 4. On January 25, paid the balance due on account payable in Event 2 within the discount period. 5. Purchased with cash $550 of supplies to be used over next several months by business. 6. Purchased with cash another 25 alarm systems on July 1 for resale at cost of $6,000. 7. Installed 60 standard alarm systems for $30,000. Sales of $20,000 were on account, while the rest were cash sales. (Note: Be sure to record cost of goods using LIFO method.) 8. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale of $500 with a cost of $210. 9. In trying to collect several of its delinquent accounts, Prudential has learned that these customers have either declared bankruptcy or move and left no forwarding address. These uncollectible accounts amount to $1,500. 1