At the end of January, $4,000 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. No accounts were written off as uncollectible in January.

Accounts	Debit	Credit
Cash	$12,200
Accounts Receivable	36,000
Inventory	153,000
Land	77,300
Buildings	130,000
Allowance for Uncollectible Accounts		$2,800
Accumulated Depreciation		10,600
Accounts Payable		28,700
Common Stock		210,000
Retained Earnings		156,400
Totals	$408,500	$408,500

During January 2018, the following transactions occur: January 1 Borrow $110,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,080 are required at the end of each month for 60 months. January 4 Receive $32,000 from customers on accounts receivable. January 10 Pay cash on accounts payable, $21,000. January 15 Pay cash for salaries, $29,900. January 30 Firework sales for the month total $200,600. Sales include $66,000 for cash and $134,600 on account. The cost of the units sold is $117,500. January 31 Pay the first monthly installment of $2,080 related to the $110,000 borrowed on January 1. Round your interest calculation to the nearest dollar.

a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a service life of 10 years and a residual value of $25,000. b. At the end of January, $4,000 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. No accounts were written off as uncollectible in January. c. Unpaid salaries at the end of January are $27,100. d. Accrued income taxes at the end of January are $9,000.

(Needing help with recording b.)

January 01Cash 110,000 Notes payable 110,000 January 04 Cash 32,000 Accounts receivable 32,000 January 10 Accounts payable 21,000 Cash 21,000 January 15 Salaries expense 29,900 Cash 29,900 66,000 134,600 January 30 Cash Accounts receivable Sales revenue 200,600 January 30 Cost of goods sold 117,500 Inventory 117,500 550 1,530 January 31Interest expense Notes payable Cash 2,080