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On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit Cash $ 59,700 Accounts Receivable 27,000 Allowance

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On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit Cash $ 59,700 Accounts Receivable 27,000 Allowance for Uncollectible Accounts $ 3,200 Inventory 37,300 Notes Receivable (5%, due in 2 years) 24,000 Land 165,000 Accounts Payable 15,800 Common Stock 230,000 Retained Earnings 64,900 Totals $313,000 $313,000 During January 2021, the following transactions occur January 1 Purchase equipment for $20,500. The company estimates a residual value of $2,500 and a six-year service life. January 4 Pay cash on accounts payable, $10,500 January 8 Purchase additional inventory on account, $92,900. January 15 Receive cash on accounts receivable, $23,999. January 19 Pay cash for salaries, $30,890. January 28 Pay cash for January utilities. $17.500 January 30 Sales for January total $230,000. All of these sales are on account. The cost of the units sold is $120,000 wa 230,000. All of these sales are on account. The cost of the units sold is $120,eee. The following information is available on January 31, 2021. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. Accrued interest revenue on notes receivable for January c. Unpaid salaries at the end of January are $33,600. d. Accrued income taxes at the end of January are $10,000. e. The company estimates and records bad debt expense (and adds to the Allowance account through this journal entry) end of each month. At the end of January, the company determines that determines $4,000 of the total Accounts Rece account is over 90 days old, with the remaining A/R balance being current (Hint use the A/R balance in the General Lec Tab). 50% of the A/R older than 90 days is estimated to be uncollectible, and 2% of the current balance is estimated to uncollectible. Please calculate the amount that needs to be added to the Allowance account and Bad Debt Expense an complete the journal entry. (Watch video tutorial on this subject: https://vimeo.com/cdlvideo/review/254531867/7c9cc

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