Exercise 8-16 On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances Debit Credit Cash $ 27.000 50,000 Allowance for Uncollectible Accounts 6.100 21.800 85.000 24.500 Accounts Payable Notes Payable (0%, due April 1, 2019) Common Stock Retained Earnings 3.400 30.400 09,000 54,000 25.500 Totals $188.400 $188.400 During January 2018, the following transacions occur: January 2 Sold gift cards totaling $11.800. The cards are redeemable for merchandise within one year of the purchase date. Purchase additional inventory on account, $186.000. Firework sales for the first half of the month total 3154,000. Al of these sales are on account. The cost of the units sold is $83.300 January 8 January 15 January 23 Recelve 5127,300 from customers on accounts receivable January 25 Pay $100,000 to inventory suppliers on acoounts payable. January 28 Write of accounts receivable as uncollectble. $8,700. January 30 Firework sales for the second half of the morth total 3182,000. Sales include $10,000 for cash and $152,000 on account. The cost of the units sold is S80,000 Pay cash for monthly salaries, $53,800. January 31 The following information is available on January 31, 2018 a. 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 S5,300 and a two-year service life b. At the end of January. S30 000 of accounts recen able are past due, and the company estimates that 30% o these accounts will not be collected Of the remaining accounts receivable, the company estimates that 5% wil not be collected c. Accrued interest expense on noles payable for January d. Accrued income taces at the end of January are S14,900 e. By the end of January, $4,900 of the gift cards sold on January 2 have been redeemed