On January 1, 2024, the general ledger of ACME Fireworks includes the following account balances Accounts Debit Credit Cash $25,400 Accounts Receivable 46,800 Allowance for Uncollectible Accounts $4,500 Inventory 20,300 Land 49,000 Equipment 16,500 Accumulated Depreciation 1,800 Accounts Payable 28,800 Notes Payable (6 , due April 1, 2025) 53,000 Common Stock 38,000 Retained Earnings 31,900 Totals $158,000 $158,000 During January 2024, the following transactions occur January 2 Sold gift cards totaling $8,600 The cards are redeemable for merchandise within one year of the purchase date January 6 Purchase additional inventory on account, $150,000 ACME uses the perpetual inventory system January 15 Firework sales for the first half of the month total $138,000 All of these sales are on account The cost of the units sold is $75,300 January 23 Receive $125,700 from customers on accounts receivable January 25 Pay $93,000 to inventory suppliers on accounts payable January 28 Write off accounts receivable as uncollectible, $5,100 January 30 Firework sales for the second half of the month total $146,000 Sales include $18,000 for cash and $128,000 on account The cost of the units sold is $81,000 January 31 Pay cash for monthly salaries, $52,300 The following information is available on January 31 Depreciation on the equipment for the month of January is calculated using the straight line method At the time the equipment was purchased, the company estimated a residual value of $3,300 and a two year service life The company records an adjusting entry for $13,200 for estimated future uncollectible accounts The company has accrued interest on notes payable for January The company has accrued income taxes at the end of January of $13,300 By the end of January, $3,300 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold)

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Posted on Jul 27, 2024

On January 1, 2024, the general ledger of ACME Fireworks includes the following account balances:

Accounts	Debit	Credit
Cash	$25,400
Accounts Receivable	46,800
Allowance for Uncollectible Accounts		$4,500
Inventory	20,300
Land	49,000
Equipment	16,500
Accumulated Depreciation		1,800
Accounts Payable		28,800
Notes Payable (6%, due April 1, 2025)		53,000
Common Stock		38,000
Retained Earnings		31,900
Totals	$158,000	$158,000

During January 2024, the following transactions occur:

January 2	Sold gift cards totaling $8,600. The cards are redeemable for merchandise within one year of the purchase date.
January 6	Purchase additional inventory on account, $150,000. ACME uses the perpetual inventory system.
January 15	Firework sales for the first half of the month total $138,000. All of these sales are on account. The cost of the units sold is $75,300.
January 23	Receive $125,700 from customers on accounts receivable.
January 25	Pay $93,000 to inventory suppliers on accounts payable.
January 28	Write off accounts receivable as uncollectible, $5,100.
January 30	Firework sales for the second half of the month total $146,000. Sales include $18,000 for cash and $128,000 on account. The cost of the units sold is $81,000.
January 31	Pay cash for monthly salaries, $52,300.

The following information is available on January 31.

Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $3,300 and a two-year service life.
The company records an adjusting entry for $13,200 for estimated future uncollectible accounts.
The company has accrued interest on notes payable for January.
The company has accrued income taxes at the end of January of $13,300.
By the end of January, $3,300 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold).