Wildhorse Co's balance sheet at December 31, 2021, is presented below. Wildhorse Co. Balance Sheet December 31, 2021 Cash $13,240 Accounts payable Accounts receivable 20,600 Common stock Allowance for doubtful accounts (770) Retained earnings Inventory 9,680 $42,750 $8,520 19.100 15,130 $42,750 During January 2022, the following transactions occurred. Wildhorse uses the perpetual inventory method. Jan. 1 3 8 11 15 Wildhorse accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $1,200 account. Wildhorse wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($200). Wildhorse purchased $15,940 of inventory on account Wildhorse sold for $23,900 on account inventory that cost $16,060. Wildhorse sold inventory that cost $720 to Jack Rice for $1,000. Rice charged this amount on his Visa First Bank card. The service fee charged Wildhorse by First Bank is 3%. Wildhorse collected $22,200 from customers on account Wildhorse paid $15,710 on accounts payable. Wildhorse received payment in full ($200) from Drake Company on the account written off on January 3. Wildhorse purchased advertising supplies for $1,380 cash. Wildhorse paid other operating expenses. $3,450. 17 21 24 27 31 Adjustment data: 1. 2. 3. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. A count of advertising supplies on January 31, 2022, reveals that $560 remains unused. The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount: round to whole dollars.) (You may want to set up T-accounts to determine ending balances. Data Account Tities and Explanation Debit To record des revenues To record out of foods sold To record des revenues and service charges To record catch and cold ! (To reverse allowance fordel (To recorded from Drake Comory! (1) 020 33