Answered step by step
Verified Expert Solution
Question
1 Approved Answer
For 10) The company estimates future uncollectible accounts. The company determines $3,400 of accounts receivable on January 31 are past due, and 50% of these
For 10) The company estimates future uncollectible accounts. The company determines $3,400 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.) Record the adjusting entry for uncollectible accounts.
Could you please help me complete the missing and wrong parts ?
Retu On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit Debit $ 59,100 25,800 $ 2,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 36,700 16,800 159,000 15,200 224,000 55,600 $ 297,400 $297,400 During January 2021, the following transactions occur: January 1 Purchase equipment for $19,900. The company estimates a residual value of $1,900 and a five-year service life. January 4 Pay cash on accounts payable, $9,900. January 8 Purchase additional inventory on account, $86,900. January 15 Receive cash on accounts receivable, $22,400. January 19 Pay cash for salaries, $30,200. January 28 Pay cash for January utilities, $16,900. January 30 Sales for January total $224,000. All of these sales are on account. The cost of the units sold is $117,000. The following information is available on January 31, 2021. 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 $3,400 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 $33,000. No Date General Journal Debit Credit 1 Jan 01 19,900 Equipment Cash 19,900 2 Jan 04 Accounts Payable 9,900 Cash 9,900 3 Jan 08 86,900 Inventory Accounts Payable 86,900 4 Jan 15 Cash 22,400 Accounts Receivable 22,400 5 Jan 19 Salaries Expense 30,200 Cash 30,200 6 Jan 28 16,900 Utilities Expense Cash 16,900 7 Jan 30 224,000 Accounts Receivable Sales Revenue 224,000 8 Jan 30 Cost of Goods Sold 117,000 Inventory 117,000 9 Jan 31 300 Depreciation Expense Accumulated Depreciation 300 10 Jan 31 Bad Debt Expense 1,700 Allowance for Uncollectible Accounts 1,700 11 Jan 31 Retained Earnings Interest Revenue 12 Jan 31 33,000 Salaries Expense Salaries Payable 33,000 13 Jan 31 9,400 Income Tax Expense Income Tax Payable 9,400 14 Jan 31 Sales Revenue 55,670 X Interest Revenue 70 x Retained Earnings 55,600 X 15 Jan 31 Retained Earnings Salaries Expense Bad Debt Expense Income Tax Expense Cost of Goods Sold Utilities Expense Depreciation Expense Adjusted TNT FIREWORKS Multiple-Step Income Statement For the year ended January 31, 2021 Cost of Goods Sold 117,000 Sales Revenue 224,000 $ 341,000 63,200 Gross profit Salaries Expense Bad Debt Expense Depreciation Expense Utilities Expense 1,700 300 16,900 82,100 Total operating expenses Operating income Interest Revenue 258,900 0 Income before taxes Income Tax Expense 258,900 9,400 249,500 Net income $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started