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1. Create Income Statement

2. Create Balance Sheet

On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit Cash $ 59,600 Accounts Receivable 26,800 Allowance for Uncollectible Accounts $ 3,100 Inventory 37,200 Notes Receivable (57, due in 2 years) 22,800 Land 164,000 Accounts Payable 15,700 Common Stock 229,000 Retained Earnings 62,600 Totals $310,400 $310,400 During January 2021, the following transactions occur: January 1 Purchase equipment for $20,400. The company estimates a residual value of $2,400 and a four-year service life. January 4 Pay cash on accounts payable, $10,400. January 8 Purchase additional inventory on account, $91,900. January 15 Receive cash on accounts receivable, $22,900. January 19 Pay cash for salaries, $30, 700. January 28 Pay cash for January utilities, $17,400. January 30 Sales for January total $229,000. All of these sales are on account. The cost of the units sold is $119,500. The following information is available on January 31, 2021. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. Accrued interest revenue on notes receivable for January. c. Unpaid salaries at the end of January are $33,500. d. Accrued income taxes at the end of January are $9,900. e. The company estimates and records bad debt expense (and adds to the Allowance account through this journal entry) at the end of each month. At the end of January, the company determines that determines $3,900 of the total Accounts Receivable account is over 90 days old, with the remaining A/R balance being current (Hint use the A/R balance in the General Ledger Tab). 50% of the A/R older than 90 days is estimated to be uncollectible, and 3% of the current balance is estimated to be uncollectible. Please calculate the amount that needs to be added to the Allowance account and Bad Debt Expense and complete the journal entry. (Watch video tutorial on this subject: https://vimeo.com/cdlvideo/review/254531867/7c9cc2a218)