On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	25,100
Accounts Receivable		46,200
Allowance for Uncollectible Accounts					$	4,200
Inventory		20,000
Land		46,000
Equipment		15,000
Accumulated Depreciation						1,500
Accounts Payable						28,500
Notes Payable (6%, due April 1, 2022)						50,000
Common Stock						35,000
Retained Earnings						33,100
Totals	$	152,300			$	152,300

During January 2021, the following transactions occur:

January		2		Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date.
January		6		Purchase additional inventory on account, $147,000.
January		15		Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $73,800.
January		23		Receive $125,400 from customers on accounts receivable.
January		25		Pay $90,000 to inventory suppliers on accounts payable.
January		28		Write off accounts receivable as uncollectible, $4,800.
January		30		Firework sales for the second half of the month total $143,000. Sales include $11,000 for cash and $132,000 on account. The cost of the units sold is $79,500.
January		31		Pay cash for monthly salaries, $52,000.

1. 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 $3,000 and a two-year service life.

2. The company estimates future uncollectible accounts. The company determines $11,000 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 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)

3. Accrued interest expense on notes payable for January.

4. Accrued income taxes at the end of January are $13,000.

5. By the end of January, $3,000 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.)

Journal entry worksheet 1 2 3 4 5 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 $3,000 and a two-year service life. Record the depreciation for the month of January. Note: Enter debits before credits. General Journal Debit Credit Date January 31 Journal entry worksheet