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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Cash Debit $ 23,900 Credit Accounts Receivable.
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Cash Debit $ 23,900 Credit Accounts Receivable. Allowance for Uncollectible Accounts Supplies 13,600 $ 1,400 2,500 Notes Receivable (68, due in 2 years) 20,000 Land 77,000 Accounts Payable 7,200 Common Stock 96,000 Retained Earnings 32,400 Totals $137,000 $137,000 During January 2021, the following transactions occur: January 2 Provide services to customers for cash, $35,100. January 6 Provide services to customers on account, $72,400. January 15 Write off accounts receivable as uncollectible, $1,000. January 20 Pay cash for salaries, $31,400. January 22 Receive cash on accounts receivable, $70,000. January 25 Pay cash on accounts payable, $5,500. January 30 Pay cash for utilities during January, $13,700. The following information is available on January 31, 2021. a. The company estimates future uncollectible accounts. The company determines $5,000 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) b. Supplies at the end of January total $700. c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. d. Unpaid salaries at the end of January are $33,500.
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