Madson CorporationAc€?cs balance sheet at December 31, 2013, is presented below.

MADSON CORPORATION
Balance Sheet
December 31, 2013
Cash $14,500 Accounts payable $8,620
Accounts receivable 21,400 Common stock 15,800
Allowance for doubtful accounts (760 ) Retained earnings 20,050
Inventory 9,330
$44,470 $44,470

During January 2014, the following transactions occurred. Madson uses the perpetual inventory method.

Jan. 1 Madson accepted a 4-month, 8% note from Matheny Company in payment of MathenyAc€?cs $4,800 account.
3 Madson wrote off as uncollectible the accounts of Payton Corporation ($400) and Cruz Company ($100).
8 Madson purchased $18,500 of inventory on account.
11 Madson sold for $26,400 on account inventory that cost $17,420.
15 Madson sold inventory that cost $700 to Rich Jenson for $1,200. Jenson charged this amount on his Visa First Bank card. The service fee charged Madson by First Bank is 3%.
17 Madson collected $22,600 from customers on account.
21 Madson paid $16,550 on accounts payable.
24 Madson received payment in full ($100) from Cruz Company on the account written off on January 3.
27 Madson purchased advertising supplies for $1,440 cash.
31 Madson paid other operating expenses, $3,060.

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, 2014, accounts receivable.
3. A count of advertising supplies on January 31, 2014, reveals that $570 remains unused.
4. The income tax rate is 30%. (Hint: Prepare the income statement up to Ac€A?Income before taxesAc€?? and multiply by 30% to compute the amount; round to whole dollars.)

*****Prepare journal entries for the transactions listed above and adjusting entries.