On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances:

Accounts	Debit			Credit
Cash	$	24,700
Accounts Receivable		43,500
Inventory		44,000
Land		82,600
Allowance for Uncollectible Accounts					3,100
Accounts Payable					28,200
Notes Payable (9%, due in 3 years)					44,000
Common Stock					70,000
Retained Earnings					49,500
Totals	$	194,800		$	194,800

The $44,000 beginning balance of inventory consists of 440 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions:

January 3	Purchase 1,250 units for $133,750 on account ($107 each).
January 8	Purchase 1,350 units for $151,200 on account ($112 each).
January 12	Purchase 1,450 units for $169,650 on account ($117 each).
January 15	Return 170 of the units purchased on January 12 because of defects.
January 19	Sell 4,200 units on account for $630,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22	Receive $617,000 from customers on accounts receivable.
January 24	Pay $420,000 to inventory suppliers on accounts payable.
January 27	Write off accounts receivable as uncollectible, $2,300.
January 31	Pay cash for salaries during January, $133,000.

The following information is available on January 31, 2018.

1. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
2. The company estimates future uncollectible accounts. The company determines $5,400 of accounts receivable on January 31 are past due, and 40% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
3. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
4. Accrued income taxes at the end of January are $13,700.

Journal entry worksheet 10 6 16 1 7 11 Record the cost of the units sold, which is determined using a FIFO perpetual inventory system Note: Enter debits before credits. Date Account Title Debit Credit Jan 19 Record entry Clear entry View general journal Journal entry worksheet 7 10 11 12 16 Prepare the adjusting entry for uncollectible accounts. Note: Enter debits before credits. Date Account Title Debit Credit Bad debt expense Jan 31 Allowance for uncollectible accounts Record entry Clear entry View general journal Journal entry worksheet 14 10 12 13 15 16 1 11 Prepare the closing entry for revenue. Note: Enter debits before credits. Account Title Date Debit Credit Jan 31 View general journal Record entry Clear entry Journal entry worksheet 10 12 13 1 11 14 16 Prepare the closing entry for expenses. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal General Leager Requiremen 15