On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Accounts Cash Accounts Recelvable Allowance for Uncollectible Accounts Inventory Debit Credit $ 25,100 46,200 S 4,200 20,000 46,000 15,000 Equipment Accumulated Depreclation Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retalned Eamlngs 1,500 28,500 50,000 35,000 33,100 Totals $152,300 $152,300 During January 2018, the following transactions occur: January 2. Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date January 6. Purchase additional inventory on account, $147,000. January 15. Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $73,800 January 23. Receive $125,400 from customers on accounts receivable January 25. Pay $90,000 to inventory suppliers on accounts payable January 28. Write off accounts receivable as uncollectible, $4,800 January 30. Firework sales for the second half of the month total $143,000. Sales include $11,000 for cash and $132,000 on account. The cost of the units sold is $79,500. January 31. Pay cash for monthly salaries, $52,000 1. Record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No General Journal Debit Credit January 02 Cash 8,000 Deferred revenue 8,000 anuary 06 Inventory 147,000 Accounts payable 147,000 January 15 Accounts receivable 135,000 Sales revenue 135,000 January 15 Cost of goods sold 73,800 Inventory 73,800 January 23 Cash 125,400 Accounts receivable 125,400 January 25 Accounts p 90,000 Cash 90,000 Allowance for uncollectible accounts 4,800 Accounts receivable 4,800 January 30 Accounts receivable 132,000 Cash 11,000 Sales revenue 143,000 January 30 Cost of goods sold 79,500 Inventory 79,500 10 January 31 Salaries expense 52,000 Cash 52,000 1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $3,000 and a two-year service life 2. The company estimates future uncollectible accounts. The company determines S 11.000 o accounts recen able on January 31 are past due and 30% ofthese accounts are estimated o be uncollectible. The remaining accounts recen able on January 31 are not past due and 5% of these accounts are estimated to be uncolectible 3. Accrued interest expense on notes payable for January 4. Accrued income taxes at the end of January are $13,000 5. By the end of January, $3,000 of the gift cards sold on January 2 have been redeemed. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit January 3 Depreciation expense Acoumulated depreciation 500 January 31 Bad debt expense 12.500 Allowance for uncollectible accounts 12.500 January 31 Interest expense 250 Interest payable 250 January 31 Income tax expense 13,000 Income tax payable 13.000 anuary 31 Cah 3,000 3.000 3. Prepare an adjusted trial balance as of January 31, 2018 ACME Fireworks Adjusted Trial Balance January 31, 2018 Accounts Debit Credit ash Accounts receivable Allowance for uncollectible accounts nventory and 5 27,500 183,000 11,900 0,700 46,000 5,000 quipment Accumulated depreciation Accounts payable 2,000 85,500 5,000 250 13,000 50,000 35,000 33,100 278,000 nterest payable ncome tax payable otes payable mon stock etained earnings Cost of Goods Sold 153,300 52,000 500 12,500 250 13,000 alaries expense preciation expense ad debt expense nterest expense ncome tax expense Totals 513,750 | $ 513,750 6. Record closing entries. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the closing entry for revenue accounts Note: Enter debits before credits Date General Journal Debit Credit January 31, 2018 Record entry Clear entry View general jourmal