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On January 1, 2013, the general ledger of Big Blast Fireworks includes the following account balances: Amt-its Debit Ca'edit Cash $ 22,500 Accounts Receivable 33,000

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On January 1, 2013, the general ledger of Big Blast Fireworks includes the following account balances: Amt-its Debit Ca'edit Cash $ 22,500 Accounts Receivable 33,000 Inventory 33,000 Land 56.100 Allowance for Uncolledible Accounts 3,?00 Accounts Payable 30,900 Notes Payable [8%, due in 3 years) 33,000 Common Stock 59,000 Retained Eamings 33,000 Totals 55 159.800 $ 159,800 The $33000 beginning balance of inventory consists of 330 units, each costing $100. During January 2013, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1200 units for $129,600 on account ($103 each). January 8 Purchase 1,300 units for $145,900 on account [$113 each}. January 12 Purchase 1,400 units for $165,200 on account ($118 each). January 15 Return 115 of the units purchased on January 12 because of defeds. January 19 Sell 4,000 units on account for $600,000 The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $571000 from customers on accounts receivable January 24 Pay $40?,000 to inventory suppliers on accounts payable January 2? Write off accounb receivable as uncollectible, $2.800. January 31 Pay cash for salaries during January' $11?,000 The tollowmg information lS available On January 31, 2013. m 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. At the end of January, $4,300 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. 01the remaining accounts receivable, the company estimates that 5% will not be collected. 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 JanuaLy are $12 600

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