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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.
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 $4,800 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 receivable 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 $13,100. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the cost of the units sold, which is determined using a FIFO perpetual inventory system. Note: Enter debits before credits. Date Account Title Debit Credit On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (9%, due in 3 years) Common Stock Retained Earnings Totals Debit Credit $ 23,500 40,500 $ 4,700 38,000 73,600 28,400 38,000 64,000 40,500 $175,600 $175,600 The $38,000 beginning balance of inventory consists of 380 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,700 units for $180,200 on account ($106 each). January 8 Purchase 1,800 units for $199,800 on account ($111 each). January 12 Purchase 1,900 units for $220,400 on account ($116 each). January 15 Return 140 of the units purchased on January 12 because of defects. January 19 Sell 5,500 units on account for $825,000. The cost of the units sold is determined using a FIFO perpetual inventory system January 22 Receive $797,000 from customers on accounts receivable. January 24 Pay $580,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,300. January 31 Pay cash for salaries during January, $122,000. 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
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