Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipme was purchased, the company estimated a residual value of $3,600 and a two-year service life. The company estimates future uncollectible accounts. The company determines $17,000 of accounts receivable on January 3 past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are past due, and 3% 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 $13,600. . By the end of January, $3,600 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/eve select "No Journal Entry Required" in the first account field.) Answer is complete but not entirely correct. No Credit Date January 31 Debit 600 1 General Journal Depreciation Expense Accumulated Depreciation Accu 600 January 31 5,695 X Bad Debt Expense Allowance for Uncollectible Accounts 5,695 January 31 280 Interest Expense Interest Payable 280 4 January 31 13,600 Income Tax Expense Income Tax Payable 13,600 Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipme was purchased, the company estimated a residual value of $3,600 and a two-year service life. The company estimates future uncollectible accounts. The company determines $17,000 of accounts receivable on January 3 past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are past due, and 3% 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 $13,600. . By the end of January, $3,600 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/eve select "No Journal Entry Required" in the first account field.) Answer is complete but not entirely correct. No Credit Date January 31 Debit 600 1 General Journal Depreciation Expense Accumulated Depreciation Accu 600 January 31 5,695 X Bad Debt Expense Allowance for Uncollectible Accounts 5,695 January 31 280 Interest Expense Interest Payable 280 4 January 31 13,600 Income Tax Expense Income Tax Payable 13,600