Exercise 6-21 Complete the accounting cycle using inventory transactions (L06-2, 6-3, 6-5, 6-6, 6-7) The following information applies to the questions displayed below) On January 2021, the general ledger of Big Blast Fireworks includes the following account balances Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Debit 23,100 19,500 36,eos 70.600 years) 36. Accounts Payable Notes Payable (5m, due to Common Stock Retained Earnings Totals 169,200 1 SON ,2 The $36,000 beginning balance of inventory consists of 360 units, each costing 100 Ouring Jan Fireworks had the following inventory transactions: 2021. Big Blast January 3 Purchase 1,500 units for $156, on account ($104 ) January 8Purchase 1.000 units for $174.400 on account 109 each January 12 Purchase 1,700 units for 1193,000 on account ($114 each) Sanuary 15 Return 130 of the units purchased on January 12 because of defects January 19 Sell 4,982 units on account for $235,000. The cost of the units sold is inventory system January 22 Receive 5709,800 from customers on accounts receivable. January 24 Pay $500,000 to inventory suppliers on accounts payable January 27 Write off accounts receivable as uncollectible, $3,100. January 31 Pay cash for salaries during January, $120,000. FIFO perpetual The following information is available on January 31, 2021 a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each b. The company estimates future uncollectible accounts. The company determines $4,600 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.) c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31 d. Accrued income taxes at the end of January are $12,900. me rondwing rormation applies to the questions displayed below) On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances! Credit Debit $ 23,100 39,500 54.300 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (8%, due in 3 years) Common Stock Retained Earnings Totals 36,00 70,600 29,400 36,000 37,500 $169,200 62,000 $169,200 The $36,000 beginning balance of inventory consists of 360 units, each costing $100. During January 2021. Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,500 units for $156,000 on account (5104 each) January 8 Purchase 1,600 units for $174,400 on account (5199 each). January 12 Purchase 1,700 units for $193,800 on account (5114 each) January 15 Return 130 of the units purchased on January 12 because of defects January 19 Sell 4,900 units on account for $735,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $7e9,000 from customers on accounts receivable. January 24 Pay $500,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,100. January 31 Pay cash for salaries during January, $120,000. The following information is available on January 31, 2021 a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each b. The company estimates future uncollectible accounts. The company determines $4,600 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) c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31 d. Accrued income taxes at the end of January are $12,900. on January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Credit Debit $ 23,108 39,500 $ 4,300 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (8%, due in 3 years) Common Stock Retained Earnings Totals 36,000 70,600 29,480 36,080 62,000 37.500 5169,200 $169,200 The $36,000 beginning balance of inventory consists of 360 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions January 3 Purchase 1,500 units for $156,000 on account ($104 each). January 8 Purchase 1,600 units for $174,400 on account ($109 each). January 12 Purchase 1,700 units for $193,800 on account ($114 each). January 15 Return 130 of the units purchased on January 12 because of defects. January 19 Sell 4,900 units on account for $735,88e. The cost of the units sold is determined using a FIFO perpetual Inventory system January 22 Receive $709,000 from customers on accounts receivable. January 24 Pay $500,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,100. January 31 Pay cash for salaries during January, $120,000. The following information is available on January 31, 2021 a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible accounts. The company determines $4.600 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) c. Accrued interest expense on notes payable for January Interest is expected to be paid each December 31 d. Accrued income taxes at the end of January are $12.900. Record the cost of inventory, sold. Note: Enter debits before credits. Date Credit ........... General Journal ........ deco Cost of goods sold Inventory Debit 559,800 January 19 559,800