On January 1, 2020, the general ledger of Redbud Company includes the following account balances: Credit Debit $ 25,100 44,500 46,000 85,600 Accounts Cash Accounts Receivable Inventory Land Allowance for Uncollectible Accounts Accounts Payable Notes Payable (9%, due in 3 years) Common Stock Retained Earnings 3,500 27,200 46,000 72,000 52,500 Totals $ 201,200 $ 201,200 The $46,000 beginning balance of inventory consists of 460 units, each costing $100. During January 2020, Redbud had the following inventory transactions: January 3 Purchase 1,450 units for $158,050 on account ($109 each). January 8 Purchase 1,550 units for $176,700 on account ($114 each). January 12 Purchase 1,650 units for $196,350 on account ($119 each). January 15 Return 180 of the units purchased on January 12 because of defects. January 19 Sell 4,800 units on account for $720,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January Receive $705,000 from customers on accounts receivable. 22 y Pay $500,000 to inventory suppliers on accounts payable. 24 January .. . ----- ---- - I ----I--ILI- 22 Receive $705,UUU Iron Customers on accounts receivable. Jary Pay $500,000 to inventory suppliers on accounts payable. 24 27 Write off accounts receivable as uncollectible, $2,500. January 31Pay cash for salaries during January, $135,000. The following information is available on January 31, 2020. a. At the end of January, the estimated selling price of the remaining units of inventory is only $100 each. (Hint: find the number of units left by adding units in beginning inventory to the number of units purchased and subtracting the number of units sold.] b. The company estimated future uncollectible accounts by preparing an aging schedule. $5,600 of accounts receivable on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The rest of the accounts receivable are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Find the total accounts receivable on January 31 by looking in the general ledger.) 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 $13,900. Taxes will be paid in March, 2020. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Account Title Credit Date Jan 03 Debit 158,050 Inventory Accounts payable 158,050 Jan 08 176,700 Inventory Accounts payable 176,700 Jan 12 Inventory 196,350 No Date Account Title Credit Debit 158,050 1 Jan 03 Inventory Accounts payable 158,050 Jan 08 Inventory 176,700 Accounts payable 176,700 Jan 12 196,350 Inventory Accounts payable 196,350 Jan 15 21,420 Accounts payable Inventory 21,420 Jan 19 720,000 Accounts receivable Sales revenue OOOO OO OO OO OO OO OO OS 720,000 Jan 19 577,100 X Cost of goods sold Inventory 577,100 X Jan 22 705,000 Cash Accounts receivable 705,000 Jan 24 500,000 Accounts payable Cash 500,000 Jan 27 2,500 Allowance for uncollectible accounts Accounts receivable 2,500 10 Jan 31 135,000 Salaries expense Cash 135,000 Jan 31 3,420 X Cost of goods sold Inventory 3,420 X Jan 31 4,530 X Bad debt expense Allowance for uncollectible accounts 4,530 > 13 Jan 31 345 Interest expense Interest payable 345 14 Jan 31 13,900 Income tax expense Income taxes payable 13,900 15 Jan 31 16 Jan 31
