Winter Company's balance sheet at December 31, 2016, is presented below. WINTER COMPANY Balance Sheet December 31. 2016 Cash $14,000 Accounts payable $8750 Accounts receivable 21,800 Common stock 21,500 Allowance for doubtful accounts (700) Retained earnings 14,250 Inventory 9,400 $44,500 During January 2017, the following transactions occurred Winter uses the perpetual inventory method. Jan. 1 Winter accepted a 4-month, 8% note from Merando company in payment of Merando's $3,600 account 3 Winter wrote off as uncollectible the accounts of Inwood Corporation ($300) and Goza Company ($300). 8 Winter purchased $15,400 of inventory on account. 11 Winter sold for $28,000 on account inventory that cost $17,700. 15 Winter sold inventory that cost $700 to Mark Lauber for $1,300. Lauber charged this amount on his Visa First Bank card. The service fee charged Winter by First Bank is 3%. 17 Winter collected $22,700 from customers on account. 21 Winter paid $16,500 on accounts payable. 24 Winter received payment in full ($300) from Goza Company on the account written off on January 3. 27 Winter purchased supplies for $1,500 cash. 31 Winter paid other operating expenses, $3,100. 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, 2017, accounts receivable. 3. A count of supplies on January 31, 2017, reveals that $600 remains unused