1. Depreciation on the equipment for the month of January is calculated using a straight-line. method. At the time the equipment was purchased, the company estimated residual value of $3,900 and a two-year service life.

2. The company estimates future uncollectible accounts. The company determines $20,000 of accounts receivable on January 1st are not past due and #% of these accounts are estimated to be uncollectible:

3. Accrued interest expense on notes payable for January

4. Accrued income taxes at the end of January are $13,900.

5. By the end of January, $3,900 of the gift cards sold on January 2 have been redeemed.

Journal Entries

1, Record depreciation for the month of January

2. Record bad debts at the end of January

3. Accrued interest expense on notes payable for January

4. Accrued income taxes at the end of January are $13,900

5. By the end of January, $3,900 of the gift cards sold on January 2 have been redemeed.

[The following information applies to the questions displayed below.] On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 26,000 48,000 $ 5,100 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retained Earnings 20,900 55,000 19,500 2,400 29,400 59,000 44,000 29,500 Totals $169,400 $169,400 During January 2018, the following transactions occur: January 2. Sold gift cards totaling $9,800. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $156,000. January 15. Firework sales for the first half of the month total $144,000. All of these sales are on account. The cost of the units sold is $78,300. January 23. Receive $126,300 from customers on accounts receivable. January 25. Pay $99,000 to inventory suppliers on accounts payable. January 28. Write off accounts receivable as uncollectible, $5,700. January 30. Firework sales for the second half of the month total $152,000. Sales include $12,000 for cash and $140,000 on account. The cost of the units sold is $84,000. January 31. Pay cash for monthly salaries, $52,900