On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Credit Debit $ 23,700 41,000 $ 4,900 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (88, due in 3 years) Common Stock Retained Earnings Totals 39,000 75, 100 27,900 39,000 65,000 42,000 $178,800 $178,800 The $39,000 beginning balance of inventory consists of 390 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,800 units for $192,600 on account ($107 each). January 8 Purchase 1,900 units for $212,800 on account ($112 each). January 12 Purchase 2,000 units for $234,000 on account ($117 each). January 15 Return 145 of the units purchased on January 12 because of defects. January 19 Sell 5,800 units on account for $870,000. The cost of the units sold is determined using a PIFO perpetual inventory system. January 22 Receive $841,000 from customers on accounts receivable. January 24 Pay $585,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,400. The $39,000 beginning balance of inventory consists of 390 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1, 800 units for $192,600 on account ($107 each). January 8 Purchase 1,900 units for $212,800 on account ($112 each). January 12 Purchase 2,000 units for $234,000 on account ($117 each). January 15 Return 145 of the units purchased on January 12 because of defects. January 19 Sell 5,800 units on account for $870,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $841,000 from customers on accounts receivable. January 24 Pay $585,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,400. January 31 Pay cash for salaries during January, $123,000. 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 $4,900 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.) 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 $13,200. 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 > Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry in the first account field.) View transaction list View journal entry worksheet No Date Account Title Debit Credit Jan 03 Inventory Accounts Payable Jan 08 Inventory Accounts Payable Jan 12 Inventory Accounts Payable Jan 15 Accounts Payable InventAN Jan 15 Accounts Payable Inventory Jan 19 Accounts Receivable Sales Revenue Jan 19 Cost of Goods Sold Inventory Jan 22 Cash Accounts Receivable Jan 24 Account Pawahi Cash 9 Jan 27 Allowance for Uncollectible Accounts Accounts Receivable Jan 27 Allowance for Uncollectible Accounts Accounts Receivable Jan 31 Salaries Expense Cash Jan 31 Cost of Goods Sold Inventory Jan 31 Bad Debt Expense Allowance for Uncollectible Accounts 13 Jan 31 Interest Expense Interest Payable 14 Jan 31 Income Tax Expense Income Taxes Payable 13 Jan 31 Interest Expense Interest Payable 14 Jan 31 Income Tax Expense Income Taxes Payable 15 Jan 31 Sales Revenue Retained Earnings 16 Jan 31 Retained Earnings Cost of Goods Sold Salaries Expense Bad Debt Expense Interest Expense Income Tax Expense