Background: Crystal Clear Cleaning uses the allowance method to estimate bad debts. Consider the following January transactions for Crystal Clear. Assignment: This question has 4 requirements. Scroll down to review the requirements and ensure you complete all requirements before submitting your work for grading. Requirements 1. The accounts used by Crystal Clear Cleaning are provided in the Chart of Accounts (click on Chart of Accounts to view). The accounts have already been opened in the General Ledger (click on General Ledger to view). 2. Prepare journal entries to record the January transactions and post the entries to the General Ledger. 3. Review each of the accounts in the General Ledger to see the results of posting the journal entries for the January transactions, including the changes in each account as well as the balance in each. 4. Review the net accounts receivable section of the balance sheet for Crystal Clear Cleaning as of January 31, 2018 (click on Balance Sheet to view). Transactions: 01/01/2018 Performed cleaning service for Debbie's D-list for $9,000 on account with terms 3/10, n/20. 01/10/2018 Borrowed money from High Roller Bank, $20,000, making a 180 day, 15% note. 01/12/2018 After discussions with Merry Cleaners, Crystal Clear has determined that $275 of the receivable owed will not be collected. Wrote off this portion of the receivable. 01/15/2018 Sold goods to Westford for $8,000 on account with terms 5/10, n/30. Cost of Goods Sold was $400. Transactions: LITIS POI LIOTT UT LITE Teceivavie. 01/15/2018 Sold goods to Westford for $8,000 on account with terms 5/10, n/30. Cost of Goods Sold was $400. 01/28/2018 Sold goods to Meaghan, Inc. for cash of $2,000 (cost $350). 01/28/2018 Collected from Merry Cleaners, $275 of receivable previously written off. 01/29/2018 Paid cash for utilities of $450. Transactions: 01720/2010 Cunicuicu TOMT Tiemy clicancis, PT Unicutivavic previously WITCLCIT UIT. 01/29/2018 Paid cash for utilities of $450. 01/31/2018 Created an aging schedule for Crystal Clear for accounts receivable. Crystal Clear determined that $8,100 of receivables were 5% uncollectible, $9,775 of receivables were 15% uncollectible, and $850 of receivables were 30% uncollectible. Crystal Clear determined the total amount of estimated uncollectible receivables and adjusted the Allowance for Bad Debts assuming a credit balance of $240 in the account. (Round to nearest whole dollar.) BUSINESS REPORTS COMPANY INFORMATION CHART OF ACCOUNTS GENERAL JOURNAL Date Accounts Debit Credit No transactions in Journal ADD TRANSACTION EDIT CHECKED TRANSACTION DELETE CHECKED TRANSACTIONS BUSINESS REPORTS January 1, 2018 January 31, 2018 COMPANY INFORMATION CHART OF ACCOUNTS | GENERAL JOURNAL Account # 10100 10400 10450 10500 10600 20100 20150 20550 30500 30700 39950 40100 40250 50100 50550 50850 Description Cash Accounts Receivable - Debbie's D-list Accounts Receivable - Merry Cleaners Accounts Receivable - Westford Merchandise Inventory Accounts Payable Notes Payable - High Roller Bank Unearned Revenue Owner, Capital Allowance for Bad Debts Income Summary Sales Revenue Service Revenue Cost of Goods Sold Bad Debts Expense Utilities Expense Type Current Asset Current Asset Contra-Asset Current Asset Current Asset Current Liability Current Liability Current Liability Stockholders' Equity Stockholders' Equity Income Summary Sales Revenue Service Revenue Cost of Goods Sold Operating Expense Operating Expense BUSINESS REPORTS COMPANY INFORMATION CHART OF ACCOUNTS GENERAL JOURNAL Crystal Clear Cleaning Ownership Type: Sole Proprietorship Company Type: Service TRANSACTIONS BY DATE GENERAL LEDGER TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Crystal Clear Cleaning Transaction List by Date Month Ended January 31, 2018 Date Account Name Debit Credit TRANSACTIONS BY DATE GENERAL LEDGER TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Crystal Clear Cleaning General Ledger Month Ended January 31, 2018 Account no. 10100 Cash Balance Debit Credit Date Debit Credit 01/01/2018 Accounts Receivable - Debbie's D-list Account no. 10400 TRATTI Balance Debit Credit Date Debit Credit 01/01/2018 BUSINESS REPORTS TRANSACTIONS BY DATE GENERAL LEDGER TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Accounts Receivable - Merry Cleaners Account no. 10450 Balance Debit Credit Date Debit Credit 01/01/2018 2,000 Accounts Receivable - Westford Account no. 10500 Balance Debit Credit Date Debit Credit 01/01/2018 Merchandise Inventory Account no. 10600 Balance Debit Credit Date Debit Credit 01/01/2018 BUSINESS REPORTS TRANSACTIONS BY DATE GENERAL LEDGER TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Accounts Payable Account no. 20100 Balance Debit Credit Date Debit Credit 01/01/2018 Notes Payable - High Roller Bank Account no. 20150 Balance Debit Credit Date Debit Credit 01/01/2018 Unearned Revenue Account no. 20550 W Balance Debit Credit Date Debit Credit 01/01/2018 BUSINESS REPORTS TRANSACTIONS BY DATE GENERAL LEDGER TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Owner, Capital Account no. 30500 HTTFR Balance Debit Credit Date Debit Credit 01/01/2018 Allowance for Bad Debts Account no. 30700 TTTTTT Balance Debit Credit Date Debit Credit 01/01/2018 240 Income Summary Account no. 39950 Balance Debit Credit Date Debit Credit 01/01/2018 BUSINESS REPORTS TRANSACTIONS BY DATE GENERAL LEDGER TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Sales Revenue Account no. 40100 Balance Debit Credit Date Debit Credit 01/01/2018 Service Revenue Account no. 40250 Balance Debit Credit Date Debit Credit 01/01/2018 Cost of Goods Sold Account no. 50100 UOTI Balance Debit Credit Date Debit Credit 01/01/2018 BUSINESS REPORTS TRANSACTIONS BY DATE GENERAL LEDGER TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Cost of Goods Sold Account no. 50100 Balance Debit Credit Date Debit Credit 01/01/2018 Bad Debts Expense VA Balance Debit Credit Date Debit Credit 01/01/2018 Utilities Expense Account no. 50850 TERTE Balance Debit Credit Date Debit Credit 01/01/2018 BUSINESS REPORTS TRANSACTIONS BY DATE GENERAL LEDGER TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Crystal Clear Cleaning Trial Balance January 31, 2018 Account Name Debit Credit 2,000 Accounts Receivable - Merry Cleaners Allowance for Bad Debts 240 Total $2,000 $240 BUSINESS REPORTS TRANSACTIONS BY DATE GENERAL LEDGER TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Crystal Clear Cleaning Income Statement Month Ended January 31, 2018 Service Revenue 0 Net Income (Loss) 0 BUSINESS REPORTS TRANSACTIONS BY DATE GENERAL LEDGER TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Crystal Clear Cleaning Balance Sheet January 31, 2018 Assets Current Assets: Accounts Receivable - Debbie's D-list Accounts Receivable - Merry Cleaners Total Current Assets 0 2,000 2,000 2,000 Total Assets 2,000 Liabilities Total Liabilities Owner's Equity BUSINESS REPORTS January 1, 2018 January 31, 2018 > GENERAL LEDGER TRANSACTIONS BY DATE Assets TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Current Assets: Accounts Receivable - Debbie's D-list Accounts Receivable - Merry Cleaners Total Current Assets 0 2,000 2,000 2,000 Total Assets 2,000 Liabilities Total Liabilities Owner's Equity Proprietor's Last Name, Capital Total Liabilities and Owner's Equity 0