How do I close the expense account/how to calculate bad debt expense
View transaction list View journal entry worksheet No Credit Date Jan 01 Account Title Cash Notes Payable (Long-term) Debit 106,000 1 106,000 2 Jan 04 31,600 Cash Accounts receivable 31,600 3 Jan 10 Accounts payable Cash 17,000 17,000 4 Jan 15 29,500 Salaries expense Cash 29,500 5 Jan 30 Cash Accounts receivable Sales revenue 65,600 130,600 196,200 6 Jan 30 115,500 Cost of goods sold Inventory 115,500 7 Jan 31 Notes Payable (Long-term) Interest expense Cash 1,519 530 2,049 8 Jan 31 845 Depreciation expense Accumulated depreciation 845 9 Jan 31 2,012 Bad debt expense Allowance for uncollectible accounts 2,012 NO 10 Jan 31 26,700 Salaries expense Salaries payable 26,700 11 Jan 31 8,600 Income tax expense Income tax payable 8,600 12 Jan 31 18,835 Notes Payable (Long-term) Notes Payable (Current) 18,835 13 Jan 31 196,200 Sales revenue Retained earnings 196,200 14 Jan 31 56,200 Retained earnings Salaries expense Bad debt expense Income tax expense Interest expense Cost of goods sold 8,600 530 115,000 a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $24,600. b. The company estimates future uncollectible accounts. The company determines $3,600 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 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Unpaid salaries at the end of January are $26,700. d. Accrued income taxes at the end of January are $8,600. e. $18,835 of the long-term note payable balance will be paid over the next year. On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $ 11,800 35,200 152,600 73,300 126,000 Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $ 2,400 10,200 24,300 206,000 156,000 $398,900 $398,900 During January 2021, the following transactions occur: January 1 Borrow $106,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,049 are required at the end of each month for 60 months. January 4 Receive $31,600 from customers on accounts receivable. January 10 Pay cash on accounts payable, $17,000. January 15 Pay cash for salaries, $29,500. January 30 Firework sales for the month total $196,200. Sales include $65,600 for cash and $130,600 on account. The cost of the units sold is $115,500. January 31 Pay the first monthly installment of $2,049 related to the $106,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021
