On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (12%, due in 3 years) Common Stock Retained Earnings Totals Debit $25,300 45,000 47,000 87,100 $204,400 Credit $3,700 26,700 47,000 73,000 54,000 $204,400 The $47,000 beginning balance of inventory consists of 470 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,550 units for $170,500 on account ($110 each). January 8 Purchase 1,650 units for $189,750 on account ($115 each). January 12 Purchase 1,750 units for $210,000 on account ($120 each). January 15 Return 185 of the units purchased on January 12 because of defects. January 19 Sell 5,100 units on account for $765,000 The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $749,000 from customers on accounts receivable. ze to inv January 24 Pay $520,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,600. January 31 Pay cash for salaries during January, $136,000. The following information is available on January 31, 2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,815. for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $14.000.

Genoral tedger Aecount Journal entry worksheet Record purchase of 1,550 units for $170,500 on account ( $110 each). Note: Enter debits before credits. BIG BLAST RIREWORKS Multiple-Step Income Statement For the Year Ended January 31, 2024 \begin{tabular}{|l|l|r|} \hline & & \\ \hline & & \\ \hline Gross Profit & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total Operating Expenses & & 0 \\ \hline Operating Income & & \\ \hline & & 0 \\ \hline Incorme Before Taxes & & \\ \hline & & \\ \hline \end{tabular} Trial Balance Balance Sheet Analyze how well Big Blast Fireworks manages its inventory. Note: Enter your inventory turnover ratio and gross profit ratio values to one decimal placo. Analyze how well Big Blast Fireworks' manages its finventory: (a) Calculate the inveatory turnever ratio for the month of January If the industry average of the inventory turnover fatio for the month of January is 16 times, s the company managing is inventory more of less efficiently than other comparies in the same industry? The imentory tumover rat o is: Is the company managing its inventocy more or less afficienty than other companies in thesame industry? (b) Calculate the gross profit ratio for the month of January if the industry average gross profit ratio is 29%, is the company more or less profitable per dolla of sales than other companies in the same indistry? The gross profit ratic is:- s the conpany more or less profitable per dollar of sales than ofher companien in the same industiy? c) Used together, what meght the irwentory tumover ratio and gross prodi ratie suggest about Eig Elast Firaworks' business strategy? is the company/s ctrategy to sell a higher volunie of less expensme idems. or does the company appear to be selling a bower volume of more expensive items? The $47,000 beginning balance of inventory consists of 470 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions January 3 Purchase 1,550 units for $170,500 on account (\$110 each). January 8 Purchase 1,650 units for $169,750 on account ( $115 each). January 15 Aetarn 105 of the und ts purchased on January 12 because of defects. January 22 Receive $749, 600 fron custoners on accounts receivable. 3anuary 24 pay \$520, 000 to Inventory suppliers ob accounts payabie. 3anuary 27 write off accounts recelvable as uncollectible, 32 , 60 . lanuary 31 pay cosh for salaries during ?ariopry. \$33,000: The following information is avaltable on January 31,2024 a. At the end of fanuary, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. (Hint Determine the number of units remaining from Jarnuary 12 after subtractong the units returned on January 15 and the units assumed sold (FiFO) on January 19] b. The company records an adjusting entry for $3.815 for estimated future uncollectable accounts c. The company accrues interest on notes payable for January interest is expected to be paid each Decernber 37 d. The comoanv accrues income faxes at the end of Januarv or $14000