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Having trouble figuring out A, B, C, D. Thank you!! On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account
Having trouble figuring out A, B, C, D. Thank you!!
On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Debit Credit Accounts Cash 24,700 43,500 Accounts Receivable Allowance for Uncollectible Accounts 3,100 44,000 82,600 Inventory Land Accounts Payable Notes Payable (9% , due in 3 years) Common Stock Retained Earnings 28,200 44,000 70,000 49,500 Totals $194,800 $194, 800 The $44,000 beginning balance of inventory consists of 440 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: 3 Purchase 1,250 units for $133,750 on account ($107 each). 8 Purchase 1,350 units for $151,200 on account ($112 each). January January January 12 Purchase 1,450 units for $169,650 on account ($117 each). January 15 Return 170 of the units purchased on January 19 Sell 4,200 units on account for $630,000. The cost of the units sold is determined using January 12 because of defects a FIFO perpetual inventory system. January 22 Receive $617,000 from customers on accounts receivable January 24 Pay $420,000 to inventory suppliers on accounts payable. January 27 Write January 31 Pay cash for salaries during January, $133,000 as uncollectible, $2,300 accounts receivable 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. The company estimates future uncollectible accounts. The company determines $5,400 of accounts receivable on January 31 are past due, and 40% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger) 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 $13,700. General Ledger Account Accounts Receivable Cash No. Date Debit Credit Balance No. Date Debit Credit Balance Jan 01 24,700 43,500 (395,300) (528,300) 8 Jan 24 420,000 Jan 19 630,000 673,500 Jan 31 133,000 56,500 10 Jan 22 617,000 54,200 Jan 27 2,300 Allowance for Uncollectible Accounts Inventory Date Credit No. Debit Balance No. Date Debit Credit Balance 3,100 Jan 01 44,000 9 Jan 27 2,300 800 1 Jan 03 133,750 177,750 Jan 08 151,200 328,950 498,600 3 Jan 12 169,650 4 Jan 15 19,890 478,710 464,670 6 Jan 19 14,040 Accounts Payable Land Debit No. Date Credit Balance No. Date Debit Credit Balance Jan 01 82,600 28,200 1 Jan 03 133,750 161,950 Jan 08 151,200 313,150 Jan 12 169,650 482,800 462.910 4 Jan 15 19,890 8 Jan 24 420,000 42,910 Notes Payable Income Taxes Payable No. Date Debit Credit Balance No. Date Debit Credit Balance 44,000 13,700 14 Jan 31 13,700 n..-i..ar. stStep by Step Solution
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