On January 1, 2021, the general ledger of Big Blast Fireworks included the following account balances: Accounts Cash Accounts receivable Allowance for uncollectible accounts Inventory Land Accounts payable Notes payable (9%, due in 3 years) Comon stock Retained earnings Totals Debit Credit $ 23,900 41,500 5,100 40,000 76,600 27, 4ee 40, eee 66,eee 43,5ee $182,eee $182,000 The $40,000 beginning balance of inventory consists of 400 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchased 1,900 units for $205,200 on account (5108 each). January 8 Purchased 2,000 units for $226,000 on account ($113 each). January 12 Purchased 2,100 units for $247,800 on account ($118 each). January 15 Returned 150 of the units purchased on January 12 because of defects. January 19 Sold 6,100 units on account for $915, eee. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Received $885,000 from customers on accounts receivable. January 24 Paid $650,000 to inventory suppliers on accounts payable. January 27 wrote off accounts receivable as uncollectible, $3,500. January 31 Paid cash for salaries during January, 5124,000. 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. At the end of January, $5,000 of accounts receivable are past due, and the company estimates that 35% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. 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 $13,300. Requirement General Journal General Ledger Trial Balance Statement Balance Sheet Analysis Prepare the journal entries for 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 2 3 4 5 6 8 ... 16 > Purchase 1,900 units for $205,200 on account ($108 cach). Note: Enter debits before credits Date Account Title Debit Credit TTTT Record entry View general journal General Ledger Account Cash Debit Accounts receivable Debit Credit Credit No Date Dec 31 Balance 23,900 Date Dec 31 Balance 41.500 Allowance for uncollectible accounts Debit Credit Inventory Debit Date Balance No Date Credit Balance 10.000 Dec 31 5.100 Land Accounts payable Debit Credit Debit Credit Date Dec 31 Balance 10500 Date Jan 01 Balance 27 400 Notes payable Common stock Debit Credit Debit Credit Balance Date Dec 31 Balance 00.000 Retained earnings Debit Credit No Balance Date Der 31 Unadjusted Big Blast Fireworks Trial Balance January 31, 2021 Account Title Debit Credit 23,900 41,500 5,100 Cash Accounts receivable Allowance for uncollectible accounts Inventory and - Accounts payable Notes payable Common stock Retained omnings 40,000 76,600 27.400 40,000 66.000 43.500 S 182 000 $ 182.000 Total Big Blast Fireworks Multiple-Step Income Statement For the year ended January 31, 2021 Gross profit Total operating expenses Operating income Income before taxes Big Blast Fireworks Classified Balance Sheet January 31, 2021 Assets Liabilities Current Assets Current Liabilities Total Current Liabilities Total Current Assets Total Liabetes Noncurrent Assets Stockholders' Equity Total Stockholders' Equity Total Libilities & Stockholders' Equity Total Assets Analyze how well Big Blast Fireworks' manages its inventory: (a) Calculate the inventory tumover ratio for the month of January of the industry average of the inventory tumover ratio for the month of January is 21.6 mes, is the company managing its inventory more or less efficiently than other companies in the same industry? The inventory turnover ratio is times The company managing its inventory more efficiently. (True or Falso) () Calculate the gross profit ratio for the month of January of the industry average gross profit ratio is 31% is the company more or less profitable per dollar of sales than other companies in the same industry? The gross prolit ratio is is the company more or loss profitable per dollar of sales? (c) Used together what might the inventory turnover ratio and gross proftratio suggest about Big Blast Fireworks' business strategy? Is the company's strategy to sell a higher volume of less expensive mis ordons the company appear to be selling a lower volume of more expensive tems? Based on the inventory turnover ratio and the gross profit ratio, Big Blast Fireworks' business Strategy appears to be selling a Balance Sheet