On January 1, 2021, the genetal ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit Cash $ 23,500 Accounts Receivable 40,500 Allowance for Uncollectible Accounts $ 4,700 Inventory 38,000 Land 73,600 Accounts Payable 20,400 Notes Payable (94, due in 3 years) 38,000 Common Stock 64.000 Retained Earnings 40, 500 Totale $175,600 $175,600 The $38,000 beginning balance of inventory consists of 380 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,700 units for $180,200 on account ($106 each). January 8 Purchase 1,800 units for $199,800 on account ($111 each). January 12 Purchase 1,900 units for $220,400 on account ($116 cach). January 15 Return 140 of the units purchased on January 12 because of defects. January 19 Sell 5,500 units on account for $825,000. The cost of the units sold is determined using a PIO perpetual inventory system. January 22 Receive 5797.000 from customers on accounts receivable. January 24 PAY $580,000 to inventory suppliers on accounts payable. January 27 Write of accounts receivable as uncollectible, $3.300. January 31 Pay cash for salaries during January, $122,000. The following information is available on January 31, 2021. each a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 b. The company estimates future uncollectible accounts. The company determines $4,800 of accounts receivable on January 31 are past due, and 40% 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 $13,100. General Requirement General Income Journal 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 Record the cost of the units sold, which is determined using a FIFO perpetual inventory system. Note: Enter debits before credits. Date Jan 19 Debit Credit Account Title Cost of Goods Sold Inventory Record entry Clear entry View general Journal Journal entry worksheet Record the closing entry for revenue. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Sales Revenue Retained Earnings Record entry Clear entry View general Journal Journal entry worksheet
