On January 1, 2018, the general ledger of TNT Fireworks includes the following account balances Accounts Cash Accounts Receivable Inventory Notes Receivable (5%, due in 2 years) Land Allowance for Uncollectible Accounts Accounts Payable Common Stock Retained Earning Debit 60,200 28,000 37,800 30,000 170,000 Credit 3,700 16,300 235,000 71,000 Totals $326,000 $326,000 During January 2018, the following transactions occur: Purchase equipment for $21,000. The company estimates a residual value of $3,000 and a six-year service life Pay cash on accounts payable, $11,000 Purchase additional inventory on account, $97,900 Receive cash on accounts receivable, $23,500 Pay cash for salaries, $31,300 Pay cash for January utilities, $18,000 Firework sales for January total $235,000. All of these sales are on account. The cost of the units sold is $122,500 January 1 January 4 January 8 January 15 January 19 January 28 January 30 The following information is available on January 31, 2018 a. Depreciation on the equipment for the month of January is calculated using the straight-line method b. At the end of January, $4,500 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 $30,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $34,100 e. Accrued income taxes at the end of January are $10,500