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, $6,000 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, 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 $14,300.

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

4. Prepare a multiple-step income statement for the period ended January 31, 2018.

5. Prepare a classified balance sheet as of January 31, 2018. (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.)

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, 2018, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit Cash Accounts Receivable Inventory Land $ 25.900 46,500 50,000 91,600 Allowance for Uncollectible Accounts Accounts Payable Notes Payable (9%, due in 3 years) Common Stock Retained Earmings Totals 4,300 25,200 50,000 76,000 58,500 $ 214,000 S 214,000 The $50,000 beginning balance of inventory consists of 500 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions January 3 Purchase 1,850 units for $209,050 on account ($113 each). January 8 Purchase 1,950 units for $230100 on account ($118 each) January 12 Purchase 2,050 units for $252.150 on account ($123 each) January 15 Return 200 of the units purchased on January 12 because of defects January 19 Sell 6,000 units on account for $900,000. The cost of the units sold is determined using a FIFO perpetual Inventory system. January 22 Receive $881,000 from customers on accounts receivable January 24 Pay $650,000 to inventory suppliers on accounts payable January 27 Write off accounts receivable as uncollectible, $2,900. January 31 Pay cash for salaries during January, $139,000