At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.]

The company records an adjusting entry for $3,070 for estimated future uncollectible accounts.

The company accrues interest on notes payable for January. Interest is expected to be paid each December 31.

The company accrues income taxes at the end of January of $12,900.

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.)

3. Prepare an adjusted trial balance as of January 31, 2024.

4. Prepare a multiple-step income statement for the period ended January 31, 2024.

5. Prepare a classified balance sheet as of January 31, 2024. (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.)

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.) a-2. If the industry average of the inventory turnover ratio for the month of January is 19.4 times, is the company managing its inventory more or less efficiently than other companies in the same industry? b-1. Calculate the gross profit ratio for the month of January. (Round your final answer to 1 decimal.) b-2. If the industry average gross profit ratio is 36%, is the company more or less profitable per dollar of sales than other companies in the same industry? c. Is the companys strategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items?

Requlred Information On January 1, 2024, the general ledger of Big Blast Fireworks Includes the following account balances: The $36,000 beginning balance of Inventory consists of 360 units, each costing $100. During January 2024 , Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,500 units for $156,000 on account ( $184 each). January 8 Purchase 1,600 units for $174,400 on account ( $109 each). January 12 Purchase 1,700 units for $193,800 on account ( $114 each). January 15 Return 130 of the units purchased on January 12 because of defects. January 19 sell 4,900 units on account for $735,000. The cost of the units sold is determined using a FIFo perpetual inventory system. January 22 Receive $709,000 from customers on accounts receivable. January 24 Pay $500,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,100. January 31 Pay cash for salaries during January, $120,000. The following information is avallable on January 31, 2024. a. At the end of January, the company estimates that the remaining units of Inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,070 for estimated future uncollectible accounts. c. The company accrues Interest on notes payable for January. Interest is expected to be pald each December 31. d. The company accrues income taxes at the end of January of $12,900. a. At the end of January, the company estimates that the remaining units of Inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,070 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be pald each December 31. d. The company accrues income taxes at the end of January of $12,900. 2. Record adjusting entries on January 31 for the above transactions. (If no entry Is required for a transaction/event, select "No Required information On Jsnuory 1, 2024, the general ledger of Big Blsst Fireworks includes the following account belances: The $36,000 beginning balance of inventory consists of 360 units, esch costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,5ee units for \$156, peE on account (\$184 cach). January g Purchase 1, 6ae units for $174,492 on account (\$19 each). January 12 Purchase 1, 7ae units for $193,892 on account (\$114 each). January 15 Return 13e of the units purchased on January 12 because of defects. January 19 Sell 4,99e units on account for $735, eae. The cost of the units sold is determined using a fIFO perpetual inventory systen. January 22 Receive \$79, Ege from customers on accounts receivable. lanuary 24 Pay \$5Re, Eae to inventory supplicrs an accounts payable. lanuary 27 Write off accounts receivable as uncollectible, \$3, 109. January 31 Pay cash for salarics during January, \$12e, eed. The following information is available on January 31, 2024. a. At the end of Janusry, the compony estimstes that the remsining units of inventory purchased on Jonuary 12 ore expected to sell in Februsry for only $100 esch. [Hint: Determine the number of units remaining from Janusry 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,070 for estimeted future uncollectible accounts. c. The company accrues interest on notes poysble for January. Interest is expected to be poid each December 31. d. The compsny accrues income toxes at the end of Janusry of $12,900. 0. At the end of January, the company estimates that the remaining units of inventory purchssed on Janusry 12 are expected to sell in Februsry for only $100 each. [Hint: Determine the number of units remsining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on Janusry 19.] b. The company records an adjusting entry for $3,070 for estimated future uncollectible accounts. c. The compony accrues interest on notes payable for Jonuary. Interest is expected to be poid each December 31. d. The company accrues income taxes at the end of January of $12,900. 3. Prepare an acjusted trial balance as of January 31, 2024. Required information On Jonuory 1, 2024, the general ledger of Big Blast Fireworks includes the following account bslances: The $36,000 beginning balsnce of inventory consists of 360 units, esch costing $100. During January 2024 , Big Blast Fireworks had the following inventory transections: January 3 Purchase 1,500 units for $156, ped on account (\$184 cach). January \& Purchase 1, 6ee units for $174,400 on account (\$199 cach). January 12 Purchase 1,79e units for \$193, gee on account (\$114 each). January 15 Return 130 of the units purchased on January 12 because of defects. lanuary 19 Sell 4,99e units on account for $735, eae. The cost of the units sold is deternined using a FIFO perpetual inventary systen. January 22 Receive $799, bee from customers on accounts receivable. January 24 Pay \$5ee, ee to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,100. January 31 Pay cash for salaries during January, \$120, eee. The following information is available on January 31, 2024. a. At the end of Janusry, the compony estimates that the remaining units of inventory purchssed on Jonuary 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on Jonuary 15 and the units assumed sold (FIFO) on January 19.] b. The company records an acjusting entry for $3,070 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The compsny accrues income toxes at the end of Janusry of $12,900. 4. Prepsere a multiple-step income stetement for the period ended Jonuary 31,2024 . Required Information On Jonuary 1, 2024, the general ledger of Big Blast Fireworks includes the following account balsnces: The $36,000 beginning balsnce of inventory consists of 360 units, esch costing $100. During January 2024 , Big Blast Fireworks had the following inventory transections: January 3 Purchase 1,50e units for \$156, gee on account (\$14 cach). January \& Purchase 1, 6ee units for $174,490 on account (\$199 cach). January 12 Purchase 1,7e units for \$193, gee on account (\$114 cach). January 15 Return 13e of the units purchased on January 12 because of defocts. January 19 sell 4,99e units on account for $735, eae. The cost of the units sold is deternined using a FiFo perpetual inventory systen. January 22 Receive \$79, ,00 fron customers on accounts receivable. lanuary 24 Pay \$5ee, ege to inventory supplicrs on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,100. January 31 Pay cash for salarics during January, \$120, eee. The following information is available on January 31,2024. a. At the end of Janusry, the compony estimates that the remaining units of inventory purchased on Jonuory 12 are expected to sell in Februsry for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtrecting the units returned on Jenuery 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,070 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be poid each December 31. d. The compsny eccrues income toxes at the end of Janusry of $12,900. Required information On Jonuary 1, 2024, the general ledger of Big Blsst Fireworks includes the following account belances: The $36,000 beginning balance of inventory consists of 360 units, each costing $100. During January 2024 , Big Blast Fireworks had the following inventory tronsections: January 3 Purchase 1, 5ee units for \$156, peg on account (\$14 cach). January \& Purchase 1, 690 units for $174,498 on account (\$199 each). January 12 Purchase 1,7ee units for \$193, ged on account (\$114 cach). January 15 Return 13e of the units purchased on January 12 because of defects. lanuary 19 sell 4,990 units on account for $735, eae. The cost of the units sold is deternined using a FIFo perpetual inventory systen. January 22 Receive \$7ag, eae from customers on accounts receivable. lanuary 24 Pay \$5ee, eae to inventory supplicrs an accounts payable. lanuary 27 Write off accounts receivable as uncollectible, \$3,1ea. lanuary 31 Pay cash for salarics during Janusry, $1.20, eee. The following information is available on January 31, 2024. 0. At the end of Janusry, the compony estimstes that the remsining units of inventory purchased on Jonuary 12 are expected to sell in Februsry for only $100 esch. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on Jenuery 15 and the units ossumed sold (FIFO) on January 19.] b. The company records an acjusting entry for $3,070 for estimated future uncollectible accounts. c. The compsny accrues interest on notes poysble for Janusry. Interest is expected to be poid each December 31. d. The compsny sccrues income toxes at the end of Janusry of $12,900. 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 2 Record the entry to close the revenue accounts. Note: Enter debits befare credits. Required information On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account bsiances: The $36,000 beginning balance of inventory consists of 360 units, esch costing $100. During Jonuary 2024, Big Blost Fireworks had the following inventory transactions: January 3 Purchase 1,5ee units for \$156, pee on account (\$184 cach). January g Purchase 1, ege units for $174,49e on account (\$199 cach). January 12 Purchase 1,79e units for \$193, geE on account (\$114 cach). January 15 Return 13e of the units purchased on January 12 because of defects. January 19 sell 4,990 units on account for $735, ege. The cost of the units sold is deternined using a fIFo perpetual inventary systen. January 22 Receive \$79, ege from customers on accounts receivable. January 24 Pay 55R,Ee to inventory supplicrs an accounts payable. lanuary 27 Write off accounts receivable as uncollectible, \$3,1ea. lanuary 31 Pay cash for salarics during January, $120, ege. The following information is available on January 31,2024. 0. At the end of Janusry, the compony estimstes that the remsining units of inventory purchssed on Jonuary 12 ore expected to sell in Februsry for only $100 esch. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on Jonuary 15 and the units assumed sold (FIFO) on Jenuary 19.] b. The compsny records an adjusting entry for $3,070 for estimated future uncollectible sccounts. c. The company accrues interest on notes poysble for January. Interest is expected to be poid each December 31. d. The company accrues income taxes at the end of Janusry of $12,900. 7. Anslyze how well Big Blsst Fireworks' mansges its inventory. a-1. Calculate the inventory turnover ratio for the month of Jonuary. (Round your final answer to 1 decimal.) a2. If the industry average of the inventory tumover ratio for the month of January is 19.4 times, is the company maneging its inventory more or less efficiently than other companies in the same industry? b.1. Calculate the gross profit ratio for the month of Janusry. (Round your final answer to 1 decimal.) b.2. If the industry aversge gross profit ratio is 36%, is the compsny more or less profitable per dollar of sales than other companies in the same industry? c. Is the compony's strategy to sell a higher volume of less expensive items or does the compony appear to be selling a lower volume of more expensive items