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Batman Inc. provides security services for many high-profile clients. On January 1, 2020, Batman's general ledger included the following balances: Dr. $23,900 13,600 $1,400 Account:
Batman Inc. provides security services for many high-profile clients. On January 1, 2020, Batman's general ledger included the following balances: Dr. $23,900 13,600 $1,400 Account: Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (6%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings 2,500 20,000 77,000 7,200 96,000 32,400 $137,000 $137,000 During the month, Batman has the following transactions occur: 1/2 - Provided services to customers for cash, S35,100 1/6 - Provided services to customers on account, $72,400 1/15 - Wrote off AR as uncollectible, $1,000 1/20 - Paid cash for salaries, $31,400 1/22 - Received cash on AR, $70,000 1/25 - Paid cash on AP, S5,500 1/30 - Paid cash for utilities during January, $13.700 1. Record each of the transactions that happened this month. 2. Record the following adjusting entries on 1/31: a. Batman uses the allowance method for uncollectible accounts. Batman determines $5,000 of AR on 1/31 are past due and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable are not past due, but Batman estimates that 5% of these will be uncollectible. b. Supplies at the end of the month total $700. c. Accrued interest revenue on notes receivable for January - interest is expected to be received December 31. d. Unpaid salaries at the end of January are $33,500. 3. Create an adjusted trial balance as of 1/31 after the above transactions. 4. Prepare an income statement for the month 5. Record the closing entries for the month
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