On January 1, 2018, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit 59,700 Cash 27000 Accounts Receivable 37,300 Inventory 24,000 Notes Receivable (5%, due in 2 years) Land 165,000 Allowance for Uncollectible Accounts 3,200 Accounts Payable 15,800 230,000 Common Stock Retained Earning 64,000 Totals $313,000 313,000 During January 2018, the following transactions occur: January 1. Purchase equipment for $20,500. The company estimates a residual value of $2,500 and a six-year service life January 4. Pay cash on accounts payable, $10,500. January 8. Purchase additional inventory on account, $92,900 January 15. Receive cash on accounts receivable, $23,000 January 19. Pay cash for salaries, $30,800. January 28. Pay cash for January utilities, $17,500. January 30. Firework sales for January total $230,000. All of these sales are on account. The cost of the units sold is $120,000. Information for adjusting entries 1. Depreciation on the equipment for the month of January is calculated using the straight-line method. 2. At the end of January, $4,000 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. The note receivable of $24,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts. 3. Accrued interest revenue on notes receivable for January 4. Unpaid salaries at the end of January are $33,600 5. Accrued income taxes at the end of January are $10,000