On January $1,2024,$ the general ledger of Freedom Fireworks includes the following account balances:

During January $2024,$ the following transactions occurred:

January $1$ Borrowed $$120,000$ from Captive Credit Corporation. The installment note bears interest at $5\%$ annually and matures in $5$ years. Payments of $$2,264\mathrm{.}55$ are required at the end of each month for $60$ months.

January $1$ Called the bonds at the contractual call price of $$120,000.$ The $6\%$ bonds pay interest semiannually each June $30$ and December $31.$

January $4$ Received $$33,000$ from customers on accounts receivable.

January $10$ Paid cash on accounts payable, $$31,000.$

January $15$ Paid cash for salaries, $$30,900.$

January $30$ Firework sales for the month totalled $$206,000.$ Sales included $$67,000$ for cash and $$139,000$ on account. The cost of the units sold was $$122,500.$

January $31$ Paid the first monthly installment of $$2,265$ related to the $$120,000$ borrowed on January $1.$

The following information is available on January $31,2024.$

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 $$26,000.$

At the end of January, $$5,000$ of accounts receivable are past due, and the company estimates that $50\%$ of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that $2\%$ will not be collected. No accounts were written off as uncollectible in January.