On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account balances:

Accounts	Debit	Credit
Cash	$23,900
Accounts Receivable	13,600
Allowance for Uncollectible Accounts		$1,400
Supplies	2,500
Notes Receivable (6%, due in 2 years)	20,000
Land	77,000
Accounts Payable		7,200
Common Stock		96,000
Retained Earnings		32,400
Totals	$137,000	$137,000

During January 2024, the following transactions occur:

January 2		Provide services to customers for cash, $35,100.
January 6		Provide services to customers on account, $72,400.
January 15		Write off accounts receivable as uncollectible, $1,000. (Assume the company uses the allowance method)
January 20		Pay cash for salaries, $31,400.
January 22		Receive cash on accounts receivable, $70,000.
January 25		Pay cash on accounts payable, $5,500.
January 30		Pay cash for utilities during January, $13,700.

2. Record adjusting entries on January 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) a. The company estimates future uncollectible accounts. The company determines $5,000 of accounts receivable on January 31 are past due, and 20% 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 to split total accounts receivable into the $5,000 past due and the remaining amount not past due.) b. Supplies at the end of January total $700. All other supplies have been used. c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. d. Unpaid salaries at the end of January are $33,500.

• The company estimates future uncollectible accounts. The company determines $5,000 of accounts receivable on January 31 are past due, and 20% 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 to split total accounts receivable into the $5,000 past due and the remaining amount not past due.) Record the adjusting entry for uncollectible accounts.

Date	General Journal	Debit	Credit
January 31	Bad Debt Expense
	Allowance for Uncollectible Accounts

• Supplies at the end of January total $700. Record the adjusting entry for supplies.

Date	General Journal	Debit	Credit
January 31	Supplies Expense
	Supplies

• Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. Record the adjusting entry for interest.

Date	General Journal	Debit	Credit
January 31	Interest Receivable
	Interest Revenue

• Unpaid salaries at the end of January are $33,500. Record the adjusting entry for salaries.

Date	General Journal	Debit	Credit
January 31	Salaries Expense
	Salaries Payable

3. Prepare an adjusted trial balance as of January 31, 2024, after updating beginning balances (above) for transactions during January (requirement 1) and adjusting entries at the end of January (requirement 2).

3D FAMILY FIREWORKS
Adjusted Trial Balance
January 31, 2024
Accounts	Debit	Credit
Cash	$78,400
Accounts Receivable	15,000
Allowance for Uncollectible Accounts
Salaries Expense
Notes Receivable	20,000
Land	77,000
Accounts Payable		1,700
Common Stock		96,000
Retained Earnings		32,400
Service Revenue		107,500
Supplies
Totals	$190,400	$237,600

4. Prepare an income statement for the period ended January 31, 2024.

3D FAMILY FIREWORKS
Income Statement
For the month ended January 31, 2024
Revenues:
Interest Revenue	100
Total Revenues	$100
Expenses:
Salaries Expense
Utilities Expense	13,700
Total Expenses	13,700

5. Prepare a classified balance sheet as of January 31, 2024. (Amounts to be deducted should be indicated with a minus sign.)