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

Accounts	Debit			Credit
Cash	$	25,700
Accounts Receivable		46,000
Inventory		49,000
Land		90,100
Allowance for Uncollectible Accounts					4,100
Accounts Payable					25,700
Notes Payable (6%, due in 3 years)					49,000
Common Stock					75,000
Retained Earnings					57,000
Totals	$	210,800		$	210,800

The $49,000 beginning balance of inventory consists of 490 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,750 units for $196,000 on account ($112 each). January 8 Purchase 1,850 units for $216,450 on account ($117 each). January 12 Purchase 1,950 units for $237,900 on account ($122 each). January 15 Return 195 of the units purchased on January 12 because of defects. January 19 Sell 5,700 units on account for $855,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $837,000 from customers on accounts receivable. January 24 Pay $620,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,800. January 31 Pay cash for salaries during January, $138,000.

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, $5,900 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 5% 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 $14,200. 2. Record adjusting entries on January 31 for the above transactions.

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.

6. Record closing entries

7. Analyze how well Big Blast Fireworks manages its inventory:

a-1. Calculate the inventory turnover ratio for the month of January.