Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I've tried everything I can, but I can't get the balance sheet to balance. On January 1, 2024, the general ledger of Big Blast Fireworks
I've tried everything I can, but I can't get the balance sheet to balance.
On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: The $44,000 beginning balance of inventory consists of 440 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,250 units for $133,750 on account (\$107 each). January 8 Purchase 1,350 units for $151,200 on account (\$112 each). January 12 Purchase 1,450 units for $169,650 on account ( 5117 each). January 15 Return 170 of the units purchased on January 12 because of defects. January 19 Sell 4,200 units on account for $630,600 The cost of the units sold is determined usiog a fIfo perpetual inventory system. January 22 Receive $617,000 fron custaners on accounts receivable. January 24 Pay $420,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,300. January 31 Poy cash for sataries during January, $133,060. The following information is availoble on January 31,2024 a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint, Determine the number of units remaining from January 12 atter subtracting the units returned on] January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,800. for estimated future uncollectible accounts. c. The company accrues interest on notes payabie for January. Interest is expected to be paid each December 3t. d. The company accrues income taxes at the end of January of $13,700. BIG BLAST FIREWORKS 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