1. 

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. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. 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. Journal entry worksheet