Cash Required information Exercise 8-18 Complete the accounting cycle (LO8-1,8-2, 8-4, 8-6) The following information applies to the questions displayed below! On January 1 2021, the general ledger of ACME Fireworks includes the following account balances Accounts Debit Credit $ 26,820 Accounts Receivable Allowance for Uncollectible Accounts $ 5,900 Inventory 21,700 Land 63,000 Equipment 23, see Accumulated Depreciation 3,200 Accounts Payable 3,200 Notes Payable (6doe April 1, 2022) 67,600 Common stock 52.000 Retained Earnings 26,30 Totals $184,500 5384,600 During January 2021, the following transactions occur January 2 Sold rift cards totaling $11,400. The cards are redeemable for merchandise within one year of the purchase cate. January 6 Purchase additional inventory on account, $164,000 January 15 Firework sales for the first half of the month total $152,000. All of these sales are on account. The cost of the units sold is $82,300 January 23 Receive $127.1 from customers on accounts receivable. January 25 Pay 5107,eee to inventory suppliers on accounts payable January 28 Write off accounts receivable as uncollectible, $6,500. January 10 Firework sales for the second half of the month total $160,000. Sales include 511,000 for cash and $149,000 on account. The cost of the units sold is $68,000 January 31 Pay cash for monthly salaries, 553,700 ch O 11 do Presen Home End PII A & 6 5 7 8 9 3 4 E O P R Y T G I F L B. N M Exercise 8-18 Part 2 Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4.900 and a two-year service life. . The company estimates future uncollectible accounts. The company determines $28,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger) Accrued interest expense on notes payable for January Accrued income taxes at the end of January are $14,700. . By the end of January, $4.700 of the gift cards sold on January 2 have been redeemed, 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 1 2 3 4 5 > Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,900 and a two-year service life. Record the depreciation for the month of January Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general Journal