1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,500 and a two-year service life. 2. At the end of January, $13,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected. 3. Accrued interest expense on notes payable for January. 4. Accrued income taxes at the end of January are $13,200. 5. By the end of January, $3,200 of the gift cards sold on January 2 have been redeemed.

1. Prepare an adjusted trial balance as of January 31, 2018

On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Debit Credit $ 25,300 Accounts Recevable 46,600 S 4,400 Inventory Land Equipment 20,200 48,000 16,500 Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retolned Earnings 1,700 28,700 52,000 37,000 32,800 Totals $156,600 S156,600 During January 2018, the following transactions occur January 2. Sold gift cards totaling $8.400. The cards are redeemable for merchandise within one year of the purchase date January 6. Purchase additional inventory on account, $149,000. January 15. Firework sales for the first half of the month total $137,000. All of these sales are on account. The cost of the units sold is $74,800 January 23. Receive $125,600 from customers on accounts receivable January 25. Pay $92,000 to inventory suppliers on accounts payable January 28. Write off accounts receivable as uncollectible, $5,000. January 30. Firework sales for the second half of the month total $145,000. Sales include $15,000 for cash and $130,000 on account. The cost of the units sold is $80,500. January 31. Pay cash for monthly salaries, $52,200