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On January 1, 2021, the general ledger of INT Fireworks includes the following account balances: Accounts Credit Debit $ 59,100 25,800 $ 2.600 Accounts Receivable

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On January 1, 2021, the general ledger of INT Fireworks includes the following account balances: Accounts Credit Debit $ 59,100 25,800 $ 2.600 Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5, due in 2 years) Land Accounts Payable Common Stock Retained Yarning Totale 36.700 16.800 159,000 15,200 224,000 55,600 $297,400 3297,400 During January 2021, the following transactions occur: January 1 Purchase equipment for $19,900. The company estimates a residual value of $1,900 and a five-year service life. January 4 Pay cash on accounts payable, 59,900. January Purchase additional Inventory on account, 586,900. January 15 Receive cash on accounts receivable, $22,400. January 19 Pay cash for salarien, $30,200. January 28 Pay cash for January utilities, $16,900. January 3o sales for January total $224,000. All of those sales are on account. The cost of the units sold is $117.000. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $3,400 of accounts receivable on January 31 are post due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger) c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $33,000. e. Accrued income taxes at the end of January are $9,400, View transaction list Journal entry worksheet Record the closing entry for expenses. Note: Enter debits before credits. Date General Journal Debit Credit January 31 2021 Record entry Clear entry View general Journal

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