On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit 25,500 45,500 Cash Accounts Receivable Allowance for Uncollectible Accounts $3,900 Inventory 48,000 88,600 Land Accounts Payable Notes Payable (8%, due in 3 years) Common Stock 26,200 48,000 74,000 Retained Earnings 55,500 $207,600 $207,600 Totals The $48,000 beginning balance of inventory consists of 480 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January January January 12 Purchase 1,850 units for $223,850 on account ($121 each) January 15 Return 190 of the units purchased on January 12 because of defects. January 19 Sell 5,400 units on account for $810,000. The cost of the units sold is determined using a FIFO perpetual inventory 3 Purchase 1,650 units for $183,150 on account ($111 each). 8 Purchase 1,750 units for $203,000 on account ($116 each) system January 22 Receive $793,000 from customers on accounts receivable January 24 Pay $580,000 to inventory suppliers on accounts payable January 27 Write off accounts receivable as uncollectible, $2,700. January 31 Pay cash for salaries during January, $137,000. 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 $5,800 of accounts receivable on January 31 are a. Atthe end of January, the company estimates that the remaining unts of Inventory are expected to sell In February for anly $100 esch bThe company estimstes future uncollectible accounts. The company determines $5,800 of accounts receiveble on January 31are past due, and 30 % of these accounts are estimsted to be uncollectible. The remaining accounts receveble an January 31 are not past due, and 4% of these sccounts are estimated to be uncollectble. (Hint Ue the January 31 eccounts recelveble balance calculsted In the general ledger c Accrued Interest expense on notes payable for January Interest s expected to be paid esch December 31 dAccrued Income tsxes st the end of January are $14,000 General Journal General Income enuremsnd Balance Shest Trial Balance Analysis Statemint Ledgen Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No jourmal entry required" in the first account field.) Vw tramchom lnt: Vawyourmal antry workahewt Debit No. Date Aoocunt Titie Credit 1 Jan 03 Invantory 183.150 Accounts Payabla 183,150 Inventory 203.000 Jan 08 Accounts Payable 203.000 Invantory 223.850 Jan 12 223,850 Accounts Payable Jan 15 Accounts Racaivable 22.980 Invantory 22.980 Accounts Recaivabier Jan 19 810.000 Sales Ravanue 810,000 Jan 19 Cost of Goods Sold 384,213 Invantory 384,213 7 Jan 22 Cach 793.000 Accounts Raceivabler 793,000 Jon 24 580,000 8 Accounts Pavable Cash Allowance for Uncolactbio Accounts Jan 27 2,700 Accounts Receivable 2.700 10 Jan 31 Salaries Expensas 137.000 Cosh 137.000 11 Jan 31 Cash 14.000 14.000 12 Jan 31 Bad Dobt Expane 4.740 Alowance for Uncollectible Accounts 4,740 Intarast Expanse 13 Jan 31 320 Interest Payables 320 14.100 14 Jan 31 Income Tax Expenser Income Taxas Payable 14.100 Sales Revenue 15 Jan 31 Cach Cach 16 Jan 31 Advartising Expanse Supplies Expenser Salares Expanse Bad Debt Expense Requirement General Ledger >
