Question
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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