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

Accounts	Debit			Credit
Cash	$	11,800
Accounts Receivable		35,200
Inventory		152,600
Land		73,300
Buildings		126,000
Allowance for Uncollectible Accounts				$	2,400
Accumulated Depreciation					10,200
Accounts Payable					24,300
Common Stock					206,000
Retained Earnings					156,000
Totals	$	398,900		$	398,900

During January 2018, the following transactions occur: January 1 Borrow $106,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,040 are required at the end of each month for 60 months. January 4 Receive $31,600 from customers on accounts receivable. January 10 Pay cash on accounts payable, $17,000. January 15 Pay cash for salaries, $29,500. January 30 Firework sales for the month total $196,200. Sales include $65,600 for cash and $130,600 on account. The cost of the units sold is $115,500. January 31 Pay the first monthly installment of $2,040 related to the $106,000 borrowed on January 1. Round your interest calculation to the nearest dollar.

Exercise 9-19 Part 2

a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a service life of 10 years and a residual value of $24,600. b. At the end of January, $3,600 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. No accounts were written off as uncollectible in January. c. Unpaid salaries at the end of January are $26,700. d. Accrued income taxes at the end of January are $8,600.

Just need Part 2 b