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ABC Co. began operations on January 1. Please prepare journal entries, where appropriate, for the following transactions during January.
Jan 2 Purchased $8,000 merchandise, 2/10, n/30. FOB Shipping Point
Jan 4 The responsible party paid the freight bill of $75
Jan 8 Returned $600 of merchandise purchased on
Jan 2 receiving credit memo
Jan 12 Paid amount owed for January 2
Jan 14 Sold $4,000 of merchandise, 1/10, n/30, FOB Destination. Cost of the merchandise was $1,500
Jan 16 The responsible party paid the freight bill of $50
Jan 24 Collected amount owed from January 14
Jan 29 Sold $2,000 of merchandise, n/30, FOB Shipping Point. Cost of the merchandise was $750
Jan 31 The responsible party paid the freight bill of $50
Prepare a multi-step Income Statement for the month of January using the above information and the additional information below:
Sales Salaries $800
Property Taxes $300
Interest Expense $200
Insurance $400
Advertising $700
What is the balance in Inventory account at January 31?
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