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

Accounts	Debit			Credit
Cash	$	22,900
Accounts Receivable		39,000
Inventory		35,000
Land		69,100
Allowance for Uncollectible Accounts					4,100
Accounts Payable					29,900
Notes Payable (12%, due in 3 years)					35,000
Common Stock					61,000
Retained Earnings					36,000
Totals	$	166,000		$	166,000

The $35,000 beginning balance of inventory consists of 350 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,400 units for $154,000 on account ($110 each). January 8 Purchase 1,500 units for $172,500 on account ($115 each). January 12 Purchase 1,600 units for $192,000 on account ($120 each). January 15 Return 125 of the units purchased on January 12 because of defects. January 19 Sell 4,600 units on account for $690,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $665,000 from customers on accounts receivable. January 24 Pay $495,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,000. January 31 Pay cash for salaries during January, $119,000.

1. Record each of the transactions listed above, assuming a FIFO perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Record adjusting entries on January 31 for the below transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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, $4,500 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected. c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $12,800.

3. Prepare an adjusted trial balance as of January 31, 2018.

4. Prepare a multiple-step income statement for the period ended January 31, 2018.

5. Prepare a classified balance sheet as of January 31, 2018. (Amounts to be deducted should be indicated with a minus sign.)

6. Record closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a-1. Calculate the inventory turnover ratio for the month of January. (Round your final answer to 1 decimal place)

b-1. Calculate the gross profit ratio for the month of January. (Round your final answer to 1 decimal place)

b-2. If the industry average gross profit ratio is 33%, is the company more or less profitable per dollar of sales than other companies in the same industry?

c. Is the companys strategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items?