calculate bad debt expense and allowance for uncollectible accounts

Exercise 9-21A Complete the accounting cycle using long-term liabilitiy transactions (LO9-2, 9-8) (GL) On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $ 12,300 36,200 153, 100 78,300 131,000 Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $ 2,900 10,700 29,800 211,000 156,500 $410,900 $410,900 During January 2021, the following transactions occur: January 1 Borrow $111.000 from Captive Credit Corporation. The installment note bears interest at 68 annually and matures in 5 years. Payments of $2,146 are required at the end of each month for 60 months. January 4 Receive $32,100 from customers on accounts receivable. January 10 Pay cash on accounts payable, $22,000. January 15 Pay cash for salaries, $30,000. January 30 Firework sales for the month total $200,000. Sales include $66,100 for cash and $134,700 on account. The cost of the units sold is $118,000. January 31 pay the first monthly installment of $2,146 related to the $111.000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $26,600. b. Unpaid salaries at the end of January are $27,200. c. Accrued income taxes at the end of January are $9,100. d. $19,723 of the long-term note payable balance will be paid over the next year. e. The company estimates and records bad debt expense (and adds to the Allowance account through this journal entry) at the end of each month. At the end of January, the company determines that determines $4,100 of the total Accounts Receivable account is over 90 days old, with the remaining A/R balance being current (Hint use the A/R balance in the General Ledger Tab). 50% of the A/R older than 90 days is estimated to be uncollectible, and 2% of the current balance is estimated to be uncollectible. Please calculate the amount that needs to be added to the Allowance account and Bad Debt Expense and complete the journal entry. (Watch video tutorial on this subject: https://vimeo.com/cdlvideo/review/254531867/7c9cc2a218) JUUI101 Leuye: JLOVCHICIIL If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. No Credit Date Jan 01 Account Title Cash Notes Payable (Long-term) Debit 111,000 1 111,000 N Jan 04 Cash 32,100 Accounts receivable 32,100 3 Jan 10 22,000 Accounts payable Cash 22,000 4 Jan 15 30,000 Salaries expense Cash 30,000 5 Jan 30 Cash Accounts receivable Sales revenue 66,100 134 700 200,800 6 Jan 30 118,000 Cost of goods sold Inventory 118,000 7 Jan 31 1,591 Notes Payable (Long-term) Interest expense Cash 555 2,146 8 Jan 31 870 Depreciation expense Accumulated depreciation 870 9 Jan 31 4.744 Bad debt expense Allowance for uncollectible accounts 4.744 2,050 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet At the end of January, $4,100 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. Note: Enter debits before credits. Credit Date Account Title Jan 31 Bad debt expense Allowance for uncollectible accounts Debit 4,744 4,744 2,050 Record entry Clear entry View general journal