Can someone help me with this, please? I got 2 different solutions, but I believe both are incorrect.

Naples Retail Ltd. started its operation in 2019. The following is the balance sheet of Naples Retail Ltd as at Dec. 31, 2019. $99,000 15,000 (2,000) 1,750 9,250 Assets Current Assets: Cash Accounts receivable Allowance for doubtful accounts (AFDA) Inventory Prepaid expenses Property, Plant and Equipment: Equipment Accumulated depreciation Total assets Liabilities and Equities Current Liabilities: Accounts payable Long-term Liabilities: Mortgage payable Equity: Common stock Retained earnings Total liabilities and stockholders' equity 125,000 (62,500) $185,500 $8,000 10,500 114,500 52,500 $185,500 It is the second year of its operation. The transactions of the company for the year 2020 are described below: Net sales for the year were $100,000 All the sales were on credit (Transaction #1) The company collected 50% of credit sales during the year (Transaction #2) and 90% of the accounts receivable of last year (Transaction #3). The rest of last year's receivable was uncollectible and written off as bad debt (Transaction #4). The company uses allowance method for recording allowances for doubtful accounts (AFDA). It calculates AFDA by using the percentage method. It estimates that 1% of credit sales will be uncollectible (Transaction #5). Naples buys finished goods for resale to the customers. It records inventory under perpetual method following FIFO cost flow. The company sold 800 units of inventory during the year. All the purchases are on credit and the ending balance of accounts payable was $4,500 (Transaction #7 paid payables). The details of all purchases for the year are as follows; (Transaction #6 - do not include beginning inventory) Date Beginning inventory Jan.30,2020 March 30,2020 Sept. 30,2020 Dec.28,2020 Total Units 50 100 200 200 300 850 Cost Per Unit $35 $30 $32 $35 $34 Amount $1750 3,000 6,400 7,000 10,200 $28,350 Naples purchased the equipment in 2019. The useful life of the equipment was estimated to be 4 years. The salvage value of the equipment was estimated to be $5,000. The Company uses double-declining method of depreciation for equipment. (Transaction #8) Other information: Interest expenses for the year were $ 1,000, relates to Mortgage Payable. (Transaction #9) Operating expenses of Naples for 2020 was $ 20,000 (Transaction #10) Prepaid expenses of last year relates to prepaid insurance premium. The total amount of insurance premium paid in last year has expired during current year. (Transaction #11) Mortgage payable amount of $3,500 is paid by the company in the month of February. (Transaction #12) Record Cost of Goods Sold of 800 Units (Transaction #13) Required: 1. Record the above transactions in the accounting equation. (Show necessary calculations). (35 Marks) Hint: Record the beginning balances from the above Balance Sheet first 2. Prepare a multi-step income statement. (10 Marks) 3. Prepare a Classified Balance Sheet (15 Marks) Balance Sheet Income Statement Naples Retail Limited Income Statement For the Year Ended December 31, 2020 Naples Retail Limited Balance Sheet As at December 31, 2020 Assets Current Assets: Total Current Assets Property, Plant and Equipment: Total Property Plant & Equipment Total assets Liabilities and Equities Current Liabilities: Long-term Liabilities: Total Liabilities Equity: Total Shareholders' Equity Total Liabilities and Stockholders' equity