How to calculate sales revenue from a general ledger?
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances Debit Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retained Earnings Credit $ 27,000 50,000 $ 6,100 21,900 65,000 24,500 3,400 30,400 69,000 54,000 25,500 Totals $188,400 $188,400 During January 2018, the following transactions occur: January 2 Sold gift cards totaling $11,800. The cards are redeemable for merchandise within one year of the purchase date January 6 Purchase additional inventory on account, $166,000 January 15 Firework sales for the first half of the month total $154,000. All of these sales are on account. The cost of the units sold is $83,300 January 23 Receive $127,300 from customers on accounts receivable January 25 Pay $109,000 to inventory suppliers on accounts payable January 28 Write off accounts receivable as uncollectible, $6,700 January 30 Firework sales for the second half of the month total $162,000. Sales include $10,000 for cash and $152,000 on account. The cost of the units sold is $89,000 Pay cash for monthly salaries, $53,900 January 31 The following information is available on January 31, 2018 The following information is available on January 31, 2018 a. 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 $5,300 and a two-year service life b. The company estimates future uncollectible accounts. At the end of January, considering the total ending balance of the accounts receivable account shown in the general ledger, $30,000 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). The company estimates that 30% of the past due balance will be uncollectible and only 5% of the current balance will become uncollectible. Please record the estimated bad debt expense c. Accrue the interest expense on notes payable for January. (Hint: recognize the expense and add as a liability, since the interest expense has not been paid yet) d. Accrue income taxes at the end of January are $14,900. (Hint: recognize the expense and add as a liability, since the income taxes have not been paid yet) e. By the end of January, $4,900 of the gift cards sold on January 2 have been redeemed General Journal General Ledger Income Requirement Trial Balance Statement Balance Sheet Analysis If no entry is required for a transaction/event, select "No journal entry required" in the first account field View transaction list Journal entry worksheet 10 12 13 41 7 12 13 15 17 Prepare the closing entry for revenue General Ledger Income Requirement General Trial Balance Statement Balance SheetAnalysis Journal If no entry is required for a transaction/event, select "No journal entry required" in the first account field View transaction list Journal entry worksheet 10 12 13 15 16 17 Prepare the closing entry for revenue Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 es revenue etained earnings
