For the income statement I am just not sure how to get the bad debt expense. For number 5 (classified balance sheet) I am not sure how to get retained earnings and allowance for uncollectible accounts. For the ratios, I am unsure how to get the current assets. Thank you!

• 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 $4,200 and a two-year service life.

• The company estimates future uncollectible accounts. The company determines $23,000 of accounts receivable on January 31 are past due, and 30% 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.)

• Accrued interest expense on notes payable for January.

• Accrued income taxes at the end of January are $14,200.

• By the end of January, $4,200 of the gift cards sold on January 2 have been redeemed.

Required information [The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 26,300 48,600 $ 5,400 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (64, due April 1, 2022) Common Stock Retained Earnings Totals 21,200 58,000 21,000 2,700 29,700 62,000 47,000 28,300 $175, 100 $175, 100 During January 2021, the following transactions occur January 2 Sold gift cards totaling $10,480. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $159,800. January 15 Firework sales for the first half of the month total $147,000. All of these sales are on account. The cost of the units sold is $79,800. January 23 Receive $126,608 from customers on accounts receivable. January 25 Pay $102,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,000. January 30 Firework sales for the second half of the month total $155,600. Sales include $11,000 for cash and $144,000 on account. The cost of the units sold is $85,500. January 31 Pay cash for monthly salaries, $53,200. ACME FIREWORKS Income Statement For the year ended January 31, 2021 Sales Revenue $ 306,200 Cost of Goods Sold |(165,300) Gross Profit $ Salaries Expense $ 53,200 Bad Debt Expense 13,660 X Depreciation Expense 700 140,900 67,560 73,340 310 Total operating expenses Operating Income Interest Expense Income Before Taxes Income Tax Expense Net Income 73,030 14,200 58,830 $ 5. Prepare a classified balance sheet as of January 31, 2021. (Enter the Asset Accounts in order of liquidity. Amour should be indicated with a minus sign.) ACME FIREWORKS Classified Balance Sheet January 31, 2021 Assets Llabilities Cash $ 86,700 310 $ Accounts Receivable Less: Allowance for Uncollectible Accounts Ins 207.000 (5,400) $ 19,100 Accounts Payable Interest Payable 201,600 Income Tax Payable 14,900 Deferred Revenue 14,200 6,200 Total Current Assets 107,410 62,000 169,410 235,600 Total Current Liabilities Notes Payable Total Liabilities Stockholders' Equity 58,000 Common Stock 21,000 Retained Earnings (3,400) 47,000 Land Equipment Accumulated Depreciation 149,710 Total Stockholders' Equity Total Liabilities and Stockholders $ 311,200 Equity Total Assets $ 319,120 View transaction list Journal entry worksheet Record the closing entry for revenue accounts. Note: Enter debits before credits. General Journal Debit Credit Date January 31, 2021 Record entry Clear entry View general journal Journal entry worksheet 1 2 > Record the closing entry for expense accounts. Note: Enter debits before credits. Date General Journal Debit Credit January 31, 2021 Record entry Clear entry View general journal Requirement 1: a-1. Calculate the current ratio at the end of January. Answer is complete but not entirely correct. Current Ratio Choose Numerator Current Assets 235,600 Current Ratio Choose Denominator Current Liabilities 107,410 Current Ratio 2.19 $ + c-1. Assume the notes payable were due on April 1, 2021, rather than April 1, 2022. Calculate the revised current ratio at the end of January. Answer is complete but not entirely correct. Choose Numerator Current Assets 311.200 Current Ratio Choose Denominator Current Liabilities 169,410 Current Ratio Current Ratio 1.84 times