Exercise 6-21 Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 66, 6-7) [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: The $42,000 beginning balance of inventory consists of 420 units, each costing $100. During January 2021 , Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,050 units for $115,500 on account ( $110 each), January 8 Purchase 1,150 units for $132,250 on account ( $115 each). January 12 Purchase 1,250 units for $150,000 on account ( $120 each). January 15 Return 160 of the units purchased on January 12 because of defects. January 19 Sell 3,600 units on account for $576,000. Theycost of the units sold is determined using a FIFO perpetual inventory systen. January 22 Receive $529,000 from customers on accounts receivable. January 24 Pay $359,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,100. January 31 Pay cash for salaries during January, $110,600. The following information is avallable 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 $5,200 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts recelvable 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 $13,500. Exercise 6-21 Part 3 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. At the end of January, $5,200 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. 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 $13,500. 3. Prepare an adjusted trial balance as of January 31, 2021. 4. Prepare a multiple-step income statement for the period ended January 31,2021. 5. Prepare a classified balance sheet as of January 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)