Simon Company completed the following transactions:

From these transactions as well as the following additional data on January 1, 2018, complete a?c:

1. Journalize the transactions. The company uses the perpetual method.

2. Post to Allowance for Doubtful Accounts, Income Summary, and Bad Debts Expense accounts as needed. (Be sure to record the beginning balance in the Allowance account in the working papers that accompany this text.)

3. Prepare a current assets section of the balance sheet. Ending balances needed are as follows: Cash, $11,000; Accounts Receivable, $160,000; Office Supplies, $2,120; Merchandise Inventory, $102,000; Prepaid Rent, $950.

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Acct. No. 114 Balance $4,200 Allowance for Doubtful Accounts Income Summary Bad Debts Expense 312 612