Exercise 9-32 (Algo) General ledger exercise; inventory transactions (Chapter 8 and LO 9-1] On January 1, 2021, the general ledger of Big Blast Fireworks included the following account balances: Accounts Cash Accounts receivable Allowance for uncollectible accounts Inventory Land Accounts payable Notes payable (8%, due in 3 years) Common stock Retained earnings Totals Debit Credit $ 23, 100 39,500 4,300 36,000 70,600 29,400 36,000 62,000 37,500 $ 169,200 $ 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 Purchased 1,500 units for $156,000 on account ($104 each). January 8 Purchased 1,600 units for $174,400 on account ($109 each). January 12 Purchased 1,700 units for $193,800 on account ($114 each). January 15 Returned 130 of the units purchased on January 12 because of defects. 19 Sold 4,900 units on account for $735,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Received $709,000 from customers on accounts receivable. January 24 Paid $500,000 to inventory suppliers on accounts payable. Wrote off accounts receivable as uncollectible, $3,100. January 31 Paid 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. At the end of January, $4,600 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 $12,900. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 10) assuming a perpetual FIFO inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adiusting entries on January 31 in the 'General Journal tab these are shown as items 11-14)