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

Accounts	Debit			Credit
Cash	$	23,700
Accounts Receivable		41,000
Inventory		39,000
Land		75,100
Allowance for Uncollectible Accounts					4,900
Accounts Payable					27,900
Notes Payable (8%, due in 3 years)					39,000
Common Stock					65,000
Retained Earnings					42,000
Totals	$	178,800		$	178,800

The $39,000 beginning balance of inventory consists of 390 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions:

January		3		Purchase 1,800 units for $192,600 on account ($107 each).
January		8		Purchase 1,900 units for $212,800 on account ($112 each).
January		12		Purchase 2,000 units for $234,000 on account ($117 each).
January		15		Return 145 of the units purchased on January 12 because of defects.
January		19		Sell 5,800 units on account for $870,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January		22		Receive $841,000 from customers on accounts receivable.
January		24		Pay $585,000 to inventory suppliers on accounts payable.
January		27		Write off accounts receivable as uncollectible, $3,400.
January		31		Pay cash for salaries during January, $123,000.

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. At the end of January, $4,900 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected.
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 $13,200.

1.		Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 10) assuming a FIFO perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.
2.		Record adjusting entries on January 31. in the 'General Journal' tab (these are shown as items 11-14).
3.		Review the adjusted 'Trial Balance' as of January 31, 2018, in the 'Trial Balance' tab.
4.		Prepare a multiple-step income statement for the period ended January 31, 2018, in the 'Income Statement' tab.
5.		Prepare a classified balance sheet as of January 31, 2018, in the 'Balance Sheet' tab.
6.		Record the closing entries in the 'General Journal' tab (these are shown as items 15-17).
7.		Using the information from the requirements above, complete the 'Analysis' tab

Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 10) assuming a FIFO perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. Record adjusting entries on January 31. in the 'General Journal' tab (these are shown as items 11-14). Record the closing entries in the 'General Journal' tab (these are shown as items 15-17). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted or post-closing balances.

Review the adjusted 'Trial Balance' as of January 31, 2018. (Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Review the adjusted 'Trial Balance' as of January 31, 2018.)

Prepare a multiple-step income statement for the period ended January 31, 2018. (Choose the appropriate accounts to complete the company's income statement. Select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance.)

Prepare a classified balance sheet as of January 31, 2018. (Make sure to select 'Post-closing' from the dropdown, which will then populate the balances in those accounts from the post-closing trial balance.)

Using the information from the requirements above, complete the 'Analysis'. (Enter your Inventory Turnover ratio and gross profit ratio value in one decimal place.)