Exercise 7-218 Complete the accounting cycle using long-term asset transactions (L07-4, 7-7) [The following information applies to the questions displayed below.) On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash $ 60,100 Accounts Receivable 27,800 Allowance for Uncollectible accounts $ 3,600 Inventory 37,700 Notes Receivable (58, due in 2 years) 28,800 Land 169,000 Accounts payable 16,200 Comon Stock 234,000 Retained Earnings 69.600 Totals $323,400 $325,400 During January Year 1, the following transactions occur January 1 Purchase equipment for $20,900. The company estimates a residual value of $2,900 and a four- year service lite January 6 Pay cash on accounts payable, $10.900. January Purchase additional inventory on account, 596,900. January 15 Receive cash on accounts receivable, 523,400 year service life. January 4 Pay cash on accounts payable, $10,900. January 8 Purchase additional inventory on account, $96,900. January 15 Receive cash on accounts receivable, $23,400. January 19 Pay cash for salaries, $31,200. January 28 Pay cash for January utilities, $17,900. January 30 Sales for January total $234,000. All of these sales are on account. The cost of the units sold is $122,000. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $4,400 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not 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) c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $34.000 e. Accrued income taxes at the end of January are $10,400. Exercise 7-21B Part 2 2. Record the adjusting entries on January 31 for the above transactions (if no entry is required for a particular transaction/event, select particular "No Journal Entry Required" in the first account field.) e. Accrued income taxes at the end of January are $10,400. Return to question Exercise 7-21B Part 2 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select particular "No Journal Entry Required" in the first account field.) No Date Answer is not complete. General Journal Depreciation Expense Accumulated Depreciation Credit 1 January 31 Dobit 375 > 375 2 January 31 Bad Debt Expense Allowance for Uncollectible Accounts 57,200 5,720