Victoria Company balance sheet at December 31, 2013, is presented below VICTORIA COMPANY Balance Sheet December 31, 2013 Cash Accounts receivable Allowance for doubtful accounts Inventory $8,620 19,500 15,690 $14,810 Accounts payable 20,500 Common stock (850) Retained earnings 9,350 $43,810 $43,810 During January 2014, the following transactions occurred. Victoria uses the perpetual inventory method Victoria accepted a 4-month, 8% note from Leon Company in payment of Leon's $2,400 account. Victoria wrote off as uncollectible the accounts of Barker Corporation ($400) and Elmo Company ($300) Jan. 1 3 8 Victoria purchased $17,260 of inventory on account. 11 Victoria sold for $26,000 on account inventory that cost $17,240 15 Victoria sold inventory that cost $700 to Joe Haribo for $1,300. Haribo charged this amount on his Visa First Bank card. The service fee charged Victoria by First Bank is 396 17 Victoria collected $21,900 from customers on account. 21 Victoria paid $16,120 on accounts payable 24 Victoria received payment in full ($300) from Elmo Company on the account written off on January 3 27 Victoria purchased advertising supplies for $1,420 cash 31 Victoria paid other operating expenses, $3,270 Adjustment data: 1. 2, 3, Interest is recorded for the month on the note from January 1 Bad debts are expected to be 5% of the January 31, 2014, accounts receivable A count of advertising supplies on January 31, 2014, reveals that $490 remains unused