7 parts questions

Required information Exercise 6-21 Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 6-6, 6-7) [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: The $47,000 beginning balance of inventory consists of 470 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,550 units for $170,500 on account ( $110 each). January 8 Purchase 1,650 units for $189,750 on account ( $115 each). January 12 Purchase 1,750 units for $210,000 on account ( $120 each). January 15 Return 185 of the units purchased on January 12 because of defacts. January 19 Sell 5,100 units on account January 22 Receive $749,000 from customers on accounts receivable. January 24 Pay $520,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,600. January 31 Pay cash for salaries during January, $136,000. The following information is avallable on January 31,2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for The $47,000 beginning balance of inventory consists of 470 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,550 units for $170,500 on account (\$110 each). January 8 Purchase 1,650 units for $189,750 on account ( $115 each). January 12 Purchase 1,750 units for $210,000 on account (\$120 each). January 15 Return 185 of the units purchased on January 12 because of defects. January 19 Setl 5,100 units on account for $765,000. The cost of the units sold is determined using a FIF0 perpetual inventory system. January 22 Receive $749,000 from customers on accounts receivable. January 24 Pay $520,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,600. January 31 Pay cash for salaries during January, $136,000. The following information is available on January 31,2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible accounts. The company determines $5,700 of accounts receivable on January 31 are past due, and 40% of these accounts are estimated to be uncollectible. The remaining accounts recelvable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts recelvable balance calculated in the general ledger.) c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $14,000. Required: 1. Record each of the transactions listed above, assuming a FIFO perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record purchase of 1,550 units for $170,500 on account ( $110 each). Note: Enter debits before credits. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible accounts. The company determines $5,700 of accounts receivable on January 31 are past due, and 40% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts recelvable balance calculated in the general ledger.) c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $14,000. 2. Record adjusting entries on January 31 for the above transactions, (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. Record the adjustment for net realizable value. Notn: Enter debits betore credits. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. At the end of January, $5,700 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts recelvable, the company estimates that 5% will not be collected. c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31 . d. Accrued income taxes at the end of January are $14,000. 3. Prepare an adjusted trial balance as of January 31, 2021 . 4. Prepare a multiple-step income statement for the period ended January 31, 2021. 5. Prepare a classified balance sheet as of January 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) 6. Record closing entries, (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the closing entry for revenue accounts. Note: Enter debits before credits. 7. Analyze how well Big Blast Fireworks' manages its inventory: a-1. Calculate the inventory turnover ratio for the month of January. (Round your final answer to 1 decimal place) a-2. If the industry average of the inventory turnover ratio for the month of January is 16.0 times, is the company managing its inventory more or less efficiently than other companies in the same industry? More Less b-1. Calculate the gross profit ratio for the month of January. (Round your final answer to 1 decimal place)