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

Accounts	Debit			Credit
Cash	$	23,900
Accounts Receivable		41,500
Inventory		40,000
Land		76,600
Allowance for Uncollectible Accounts					5,100
Accounts Payable					27,400
Notes Payable (9%, due in 3 years)					40,000
Common Stock					66,000
Retained Earnings					43,500
Totals	$	182,000		$	182,000

The $40,000 beginning balance of inventory consists of 400 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions:

January 3	Purchase 1,900 units for $205,200 on account ($108 each).
January 8	Purchase 2,000 units for $226,000 on account ($113 each).
January 12	Purchase 2,100 units for $247,800 on account ($118 each).
January 15	Return 150 of the units purchased on January 12 because of defects.
January 19	Sell 6,100 units on account for $915,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22	Receive $885,000 from customers on accounts receivable.
January 24	Pay $650,000 to inventory suppliers on accounts payable.
January 27	Write off accounts receivable as uncollectible, $3,500.
January 31	Pay cash for salaries during January, $124,000.

The following information is available on January 31, 2018.

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

At the end of January, $5,000 of accounts receivable are past due, and the company estimates that 35% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected.

Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.

Accrued income taxes at the end of January are $13,300.

Requirements:

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 and 16).
7.		Using the information from the requirements above, complete the 'Analysis' tab.