On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (98, due in 3 years) Common Stock Retained Earnings Totals Debit Credit $ 22,300 37,500 $ 3,500 32,000 64,600 31,400 32,000 58,000 31,500 $156, 400 $156, 400 The $32,000 beginning balance of inventory consists of 320 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,100 units for $117,700 on account ($107 each). January 8 Purchase 1, 200 units for $134,400 on account ($112 each). January 12 Purchase 1,300 units for $152,100 on account ($117 each). January 15 Return 110 of the units purchased on January 12 because of defects. January 19 Sell 3,700 units on account for $555,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $533,000 from customers on accounts receivable. January 24 Pay $363,000 to inventory suppliers on accounts payable. accounts receivable as uncollectible, $2,700. ay cash for salaries during January, $116,000. The following information is available on January 31, 2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible accounts. The company determines $4,200 of accounts receivable on January 31 are past due, and 40% 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.) 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 $12,500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 10) assuming a FIFO perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31. in the 'General Journal' tab (these are shown as items 11-14). 3. Review the adjusted 'Trial Balance' as of January 31, 2021, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2021, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 15 and 16). 7. Using the information from the requirements above, complete the 'Analysis' tab. Requirement General Journal > Journal entry worksheet 2 3 4 5 6 7 8 ..... 16 Record purchase of 1,100 units for $117,700 on account ($107 each). Note: Enter debits before credits. Date Account Title Debit Credit Jan 03 Record entry Clear entry View general journal Journal entry worksheet 3 4 5 6 7 8 ..... 16 Record purchase of 1,200 units for $134,400 on account ($112 each). Note: Enter debits before credits. Date Account Title Debit Credit Jan 08 Record entry Clear entry View general journal Journal entry worksheet Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. Record the adjusting entry for interest. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet Accrued income taxes at the end of January are $12,500. Record the adjusting entry for income tax. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet Record the closing entry for revenue. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet