On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit Debit $ 60,300 28,200 $ 3,800 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (58, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,900 31,200 171,000 16,400 236,000 72,400 $328,600 $328,600 During January 2021, the following transactions occur: January 1 Purchase equipment for $21,100. The company estimates a residual value of $3,100 and a five-year service life. January 4 Pay cash on accounts payable, $11,100. January 8 Purchase additional inventory on account, $98,900. January 15 Receive cash on accounts receivable, $ 23,600. January 19 Pay cash for salaries, $31,400. January 28 Pay cash for January utilities, $18, 100. January 30 Sales for January total $236,000. All of these sales are on account. The cost of the units sold is $123,000. 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. The company estimates future uncollectible accounts. The company determines $4,600 of accounts receivable on January 31 are past 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 $34,200. e. Accrued income taxes at the end of January are $10,600. Journal entry worksheet 2 3 4 5 6 7 8 15 Purchase equipment for $21,100. The company estimates a residual value of $3,100 and a five-year service life. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Journal entry worksheet Purchase additional inventory on account, $98,900. Note: Enter debits before credits. Date General Journal Debit Credit Jan 08 Record entry Clear entry View general journal Journal entry worksheet Pay cash for salaries, $31,400. Note: Enter debits before credits. Date General Journal Debit Credit Jan 19 Record entry Clear entry View general journal Journal entry worksheet Pay cash for January utilities, $18,100. Note: Enter debits before credits. Date General Journal Debit Credit Jan 28 Record entry Clear entry View general journal Journal entry worksheet