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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Cash Debit $ 27,500 Credit Accounts Receivable
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Cash Debit $ 27,500 Credit Accounts Receivable 15,400 Allowance for Uncollectible Accounts $ 4,400 Supplies 4,300 Notes Receivable (6%, due in 2 years) 22,000 Land 80,700 Accounts Payable 9,300 Ook Common Stock 182,000 Retained Earnings 34,200 Totals $149,900 $149,900 rences During January 2021, the following transactions occur. January 2 Provide services to customers for cash, $53,100. January 6 Provide services to customers on account, $90,400. January 15 write off accounts receivable as uncollectible, $4,100. January 28 Pay cash for salaries, $33,200. January 22 Receive cash on accounts receivable, 588,000. January 25 Pay cash on accounts payable, $7,300. January 30 Pay cash for utilities during January, $15,500. The following information is available on January 31, 2021 a. The company estimates future uncollectible accounts. The company determines $4,700 of accounts receivab past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts rece calculated in the general ledger) b. Supplies at the end of January total $850, c. Accrued Interest revenue on notes receivable for January, Interest is expected to be received each December d. Unpaid salaries at the end of January are $35,300.
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