1. Jan. 1 Issued 18,000 shares of common stock for $90,000 cash. 2. Jan. 3 Purchased $108,000 of office equipment by paying $9,000 cash and by signing a one-year, 10% interest-bearing note payable for the remaining balance. 3. Jan. 3 Purchased $5,400 supplies on account. Hint: Debit supplies. 4. Jan. 4 Performed $7,200 of legal services on account. 5. Jan. 6 Received a $2,700 cash deposit from a new client for legal work to commence next month. 6. Jan. 10 Paid $9,000 cash for a 12-month insurance policy. Analyze each of the above transactions and record the general journal entry for each, omitting explanations. Ignore any month-end adjusting entries.

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)