On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances Credit Debit $ 25,200 46,400 $ 4,300 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (s, due April 1, 2022) Common Stock Retained Earnings Totals 20,100 47,000 16,000 1,600 28,600 51,000 36,000 $154,700 $154,700 During January 2021, the following transactions occur January 2 sold elft cards totaling $3,200. The cards are redeemable for merchandise within one year of the purchase date. January 5 Purchase additional inventory on account, 5143,000. January 15 Firework sales for the first half of the month total $136,000. All of these sales are on account. The cost of the units sold is $74,300. January 23 Receiv $125,500 from customers on accounts recente January 25 Pay 591,000 to inventory suppliers on accounts payable January 28 Write off accounts receivable as uncollectible, $4,900. January 90 Firework sales for the second half of the month total $144,000. Sales Include $10,000 for cash and $134,000 on account. The cost of the units sold is $80,000. January 31 Pay cash for monthly salaries, 352,100. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $3,400 and a two-year service life . The company estimates future uncollectible accounts. The company determines $12,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger) Accrued interest expense on notes payable for January Accrued income taxes at the end of January are $13,100. . By the end of January $3100 of the gift cards sold on January 2 have been redeemed 2. Record the adjusting entries on January 31 for the above transactions (If no entry is required for a particular transaction/event. select "No Journal Entry Required" in the first account field.) Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $3,400 and a two-year service life. . The company estimates future uncollectible accounts. The company determines $12,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Accrued interest expense on notes payable for January Accrued income taxes at the end of January are $13,100 By the end of January, $3,100 of the gift cards sold on January 2 have been redeemed. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet
