Financial Accounting I Problem #3 (31 points) Spring 2022 Final Exam. ABC Inc. was organized and started its business on July 1, 2009. The company sells merchandise and provides services. The company adjusts and closes its accounts at the end of each month. The following is the after-closing trial balance as of August 31, 2009 Clean Air Inc. After-closing Trial Balance - August 31, 2009 $12,200 Cash Inventory $2,800 Accounts Receivable $5,000 Allowance for Doubtful Accounts 1,200 Office furniture 12,000 Accumulated depreciation 500 Notes Payable $5,000 Capital Stock 15,000 Retained Earnings 10,300 Total 32,000 32,000 A Transactions for September, 2009 1. September 1: 300 units of inventory were purchased at $80 per unit on account. No cash discount was offered by the supplier. 2. September 10: 320 units of inventory were sold for $120 per unit on account. Credit terms are 4/10, n/30. The company uses a LIFO cost flow assumption for inventory valuation. 3. September 15: Customer returned 20 units. 4. September 18: Customer paid the amount due for inventory. 5. September 30: Uncollectible accounts expense was calculated as 1% of net credit sales for the month of September, and the appropriate journal entry was made. Additional information: 1. Beginning inventory as of September 1st, 2009 consisted of 40 units at $70 each. 2. Office furniture was purchased at the beginning of July. The useful life is 4 years. 3. Salaries of the employees for September were $7, 500, payable on October 5, 2009. Required: 1. Prepare journal entries for the transactions during September 2009. 2. Post them to a Ledger. 3. Prepare a Trial Balance. 4. Prepare necessary adjusting entries at the end of September 2009. 5. Prepare an Adjusted Trial Balance. 6. Prepare an Income Statement, a Statement of Retained Earnings, and a Balance Sheet. 5