JUST NEED HELP WITH 16
On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (64, due in 3 years) Common Stock Retained Earnings Totals Debit Credit $ 24,500 43,000 $ 2,900 43,000 81,100 28,700 43,000 69,000 48,000 $191,600 $191,600 The $43,000 beginning balance of inventory consists of 430 units, each costing $100. During January Year 1, the company had the following inventory transactions: January 3 Purchase 1,150 units for $121,900 on account ($106 each). January 8 Purchase 1,250 units for $138,750 on account ($111 each). January 12 Purchase 1,350 units for $156, 600 on account ($116 each). January 15 Return 165 of the units purchased on January 12 because of defects. January 19 Sell 3,900 units on account for $624,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $573,000 from customers on accounts receivable. January 24 Pay $380,000 to inventory suppliers on accounts payable. January 27 write off accounts receivable as uncollectible, $2,200. January 31 Pay cash for salaries during January, $132,000. The following information is available on January 31, Year 1. 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 $5,300 of accounts receivable on January 31 are past due, and 35% 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.) 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 $13,600. No Date Account Title Debit Credit - 1 Jan 03 121,900 Inventory Accounts Payable 121,900 2 Jan 08 138,750 Inventory Accounts Payable 138,750 3 3 Jan 12 156,600 Inventory Accounts Payable 156,600 4 Jan 15 19,140 Accounts Payable Inventory 19,140 5 Jan 19 Accounts Receivable 624,000 Sales Revenue 624,000 6 Jan 19 427,770 Cost of Goods Sold Inventory 427,770 7 Jan 22 573,000 Cash Accounts Receivable 573,000 2 8 Jan 24 380,000 Accounts Payable Cash 380,000 9 Jan 27 2,200 Allowance for Uncollectible Accounts Accounts Receivable 2,200 2 10 Jan 31 Salaries Expense 132,000 Cash 132,000 11 Jan 31 1,840 Cost of Goods Sold Inventory 1,840 12 Jan 31 Bad Debt Expense 3.750 12 Jan 31 3,750 Bad Debt Expense Allowance for Uncollectible Accounts 3,750 13 Jan 31 215 Interest Expense Interest Payable 215 14 Jan 31 13,600 Income Tax Expense Income Taxes Payable 13,600 15 Jan 31 624,000 Sales Revenue Retained Earnings 624,000 16 Jan 31 44,825 Sales Revenue Retained Earnings 44,825
