Wildhorse Co.s balance sheet at December 31, 2021, is presented below.

Wildhorse Co. Balance Sheet December 31, 2021
Cash		$13,240			Accounts payable		$8,520
Accounts receivable		20,600			Common stock		19,100
Allowance for doubtful accounts		(770)			Retained earnings		15,130
Inventory		9,680
		$42,750					$42,750

During January 2022, the following transactions occurred. Wildhorse uses the perpetual inventory method.

Jan. 1		Wildhorse accepted a 4-month, 8% note from Betheny Company in payment of Bethenys $1,200 account.
3		Wildhorse wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($200).
8		Wildhorse purchased $15,940 of inventory on account.
11		Wildhorse sold for $23,900 on account inventory that cost $16,060.
15		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%.
17		Wildhorse collected $22,200 from customers on account.
21		Wildhorse paid $15,710 on accounts payable.
24		Wildhorse received payment in full ($200) from Drake Company on the account written off on January 3.
27		Wildhorse purchased advertising supplies for $1,380 cash.
31		Wildhorse paid other operating expenses, $3,450.

Adjustment data:

1.		Interest is recorded for the month on the note from January 1.
2.		Bad debts are expected to be 6% of the January 31, 2022, accounts receivable.
3.		A count of advertising supplies on January 31, 2022, reveals that $560 remains unused.
4.		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.)

A) Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.)

B) Prepare an adjusted trial balance at January 31, 2022.

C) Prepare an income statement for the month ending January 31, 2022.

D) Prepare a retained earnings statement for the month ending January 31, 2022.

E) Prepare a classified balance sheet as of January 31, 2022.