When solving, please show how you calculate bad debt expense and allowance for doubtful accounts

Winter Company's balance sheet at December 31, 2018, is presented below. Cash WINTER COMPANY Balance Sheet December 31, 2018 $12,900 Accounts payable 20,700 Common stock (800) Retained earnings 9,900 Accounts receivable Allowance for doubtful accounts Inventory $9,300 21,000 12,400 $42,700 $42,700 During January 2019, the following transactions occurred. Winter uses the perpetual inventory method. Jan. 1 3 8 11 15 Winter accepted a 4-month, 8% note from Merando Company in payment of Merando's $1,200 account. Winter wrote off as uncollectible the accounts of Inwood Corporation ($500) and Goza Company ($300). Winter purchased $16,300 of inventory on account. Winter sold for $28,800 on account inventory that cost $19,500. Winter sold inventory that cost $800 to Mark Lauber for $1,100. Lauber charged this amount on his Visa First Bank card. The service fee charged Winter by First Bank is 3%. Winter collected $23,400 from customers on account. $ Winter paid $15,000 on accounts payable. Winter received payment in full ($300) from Goza Company on the account written off on January 3. Winter purchased supplies for $1,300 cash. Winter paid other operating expenses, $3,800. 17 21 24 27 31 Adjustment data: 1. 2. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2019, accounts receivable. A count of supplies on January 31, 2019, reveals that $500 remains unused. 3. Date Account Titles and Explanation Debit Credit Jan. 1 Notes Receivable 1200 Accounts Receivable 1200 Jan. 3 V Allowance for Doubtful Accounts 800 Accounts Receivable 800 Jan. 8 inventory 16300 Accounts Payable 16300 Jan. 11 Accounts Receivable 28800 Sales Revenue 28800 (To record sales) Cost of Goods Sold 19500 Inventory 19500 (To record cost of goods sold) Jan. 15 Cash 1067 Service Charge Expense 33 Sales Revenue 1100 (To record sales and service charges) Cost of Goods Sold 800 Inventory 800 (To record cost of goods sold) Jan. 17 v cash 23400 Accounts Receivable 23400 Jan. 21 Accounts Payable 15000 cash 15000 Jan. 24 v Accounts Receivable 300 Allowance for Doubtful Accounts 300 (To reverse allowance for doubtful debts) Cash 300 Accounts Receivable 300 (To record cash received from Rios Company) Jan. 27 Supplies 1300 Cash 1300 Jan. 31 v Other Operating Expenses 3800 Cash 3800 Prepare adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 31 (1) Interest Receivable 8 Interest Revenue 8 (2) Bad Debts Expense 1446 IX Allowance for Doubtful Accounts 1446 (3) Supplies Expense 800 supplies 800 Prepare an adjusted trial balance at January 31, 2019. WINTER COMPANY Adjusted Trial Balance January 31, 2019 Debit Credit Cash 17567 Accounts Receivable 24100 Allowance for Doubtful Accounts 1946 Inventory 5900 Accounts Payable 10600 Common Stock 21000 Retained Earnings 12400 Sales Revenue 29900 supplies 500 Notes Receivable 1200 Interest Revenue Interest Receivable 8 Accounts Payable 10600 Common Stock 21000 Retained Earnings 12400 Sales Revenue 29900 supplies 500 Notes Receivable 1200 Interest Revenue 8 CIOUUUUUUOT Didddddd Interest Receivable 8 Cost of Goods Sold 20300 Service Charge Expense 33 Other Operating Expenses 3800 Bad Debts Expense 1446 Supplies Expense 800 x 75654 74070 $ WINTER COMPANY Income Statement x $ bol iddi $ X X II x Your answer is incorrect. Try again. Prepare a retained earnings statement for the month ending January 31, 2019. WINTER COMPANY Retained Earnings Statement x= x Prepare a classified balance sheet as of January 31, 2019. (List current assets in order of liquidity.) WINTER COMPANY Balance Sheet Assets X bodde i Liabilities and Stockholders' Equity | X X $ T| DO