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On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit Cash $ 23,900 Accounts Receivable 13,600

On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:

Accounts Debit Credit
Cash $ 23,900
Accounts Receivable 13,600
Supplies 2,500
Notes Receivable (6%, due in 2 years) 20,000
Land 77,000
Allowance for Uncollectible Accounts $ 1,400
Accounts Payable 7,200
Common Stock 96,000
Retained Earnings 32,400
Totals $137,000 $137,000

During January 2018, the following transactions occur:

January 2 Provide services to customers for cash, $35,100.
January 6 Provide services to customers on account, $72,400.
January 10 Write off accounts receivable as uncollectible, $1,000.
January 20 Pay cash for salaries, $31,400.
January 22 Receive cash on accounts receivable, $70,000.
January 25 Pay cash on accounts payable, $5,500.
January 30 Pay cash for utilities during January, $13,700.

1. Record the adjustment needed for the allowance for uncollectible accounts at 12/31. At the end of January, $5,000 of accounts receivable are past due, and the company estimates that 20% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected.

2.Record the interest revenue on the (6%, due in 2 years) note receivable for January.

3.Record the interest revenue on the (6%, due in 2 years) note receivable for January.

4.Record the entry to close the revenue accounts.

5.Record the entry to close the expense accounts.

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