On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 103,200 Accounts receivable 38,000 Inventory 154,000 Land 87,300 Buildings 140,000 Allowance for uncollectible accounts $ 3,800 Accumulated depreciation 11,600 Accounts payable 39,700 Bonds payable 140,000 Discount on bonds payable 32,000 Common stock 220,000 Retained earnings 139,400 Totals $ 554,500 $ 554,500 During January 2024, the following transactions occurred: January 1 Borrowed $120,000 from Captive Credit Corporation. The installment note bears interest at 5% annually and matures in 5 years. Payments of $2,264.55 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $120,000. The 6% bonds pay interest semiannually each June 30 and December 31. January 4 Received $33,000 from customers on accounts receivable. January 10 Paid cash on accounts payable, $31,000. January 15 Paid cash for salaries, $30,900. January 30 Firework sales for the month totalled $206,000. Sales included $67,000 for cash and $139,000 on account. The cost of the units sold was $122,500. January 31 Paid the first monthly installment of $2,265 related to the $120,000 borrowed on January 1. The following information is available on January 31, 2024. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $26,000. At the end of January, $5,000 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. No accounts were written off as uncollectible in January. Unpaid salaries at the end of January are $28,100. Accrued income taxes at the end of January are $7,000