One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the following post-closing balances at December 31: Cash $ 18,970 15 Accounts Receivable 14,130 Allowance for Doubtful Accounts 430* 2,000 Inventory Deferred Revenue (40 units) 4,800 Accounts Payable 2,040 12,000 Notes Payable (long-term) Common Stock Retained Earnings 10,900 4,930 *credit balance. The following information is relevant to the first month of operations in the following year: • OTP will sell inventory at $120 per unit. OTP's January 1 inventory balance consists of 50 units at a total cost of $2,000. OTP's policy is to use the FIFO method, recorded using a perpetual inventory system. • In December, OTP received a $4,800 payment for 40 units OTP is to deliver in January, this obligation was recorded in Deferred Revenue. Rent of $1,140 was unpaid and recorded in Accounts Payable at December 31. • OTP's notes payable mature in three years, and accrue interest at a 10% annual rate.