Reference no: EM133062708

Question - Swifty Company's balance sheet at December 31, 2021, is presented as follows.

SWIFTY COMPANY Balance Sheet December 31, 2021
Cash	$13,000	Accounts payable	$9,600
Accounts receivable	19,400	Common stock	21,000
Allowance for doubtful accounts	(800)	Retained earnings	10,000
Inventory	9,000
	$40,600		$40,600

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

Jan. 1 Swifty accepted a 4-month, 8% note from Merando Company in payment of Merando's $1,200 account.

Jan. 3 Swifty wrote off as uncollectible the accounts of Inwood Corporation ($400) and Goza Company ($300).

Jan. 8 Swifty purchased $17,000 of inventory on account.

Jan. 11 Swifty sold for $26,900 on account inventory that cost $19,400.

Jan. 15 Swifty sold inventory that cost $800 to Mark Lauber for $1,000. Lauber charged this amount on his Visa First Bank card. The service fee charged Swifty by First Bank is 3%.

Jan. 17 Swifty collected $23,400 from customers on account.

Jan. 21 Swifty paid $13,800 on accounts payable.

Jan. 24 Swifty received payment in full ($300) from Goza Company on the account written off on January 3.

Jan. 27 Swifty purchased supplies for $1,500 cash.

Jan. 31 Swifty paid other operating expenses, $3,600.

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 supplies on January 31, 2022, reveals that $500 remains unused.

Required - Prepare journal entries for the transactions listed above. (Include entries for cost of goods sold using the perpetual system.)