On January 1, Year 1, the general ledger of Redbud Company includes the following account balances: 1 Accounts Cash 14.5 points eBook Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (8%, due in 3 years) Common Stock Retained Earnings Totals Debit Credit $ 25,500 45,500 $ 3,900 48,000 88,600 26,200 48,000 74,000 55,500 $207,600 $207,600 The $48,000 beginning balance of inventory consists of 480 units, each costing $100. During January Year 1, the company had the following inventory transactions: January 3 Purchase 1,650 units for $183,150 on account ($111 each). January 8 Purchase 1,750 units for $203,000 on account ($116 each). January 12 Purchase 1,850 units for $223,850 on account ($121 each). January 15 Return 190 of the units purchased on January 12 because of defects. January 19 Sell 5,400 units on account for $810,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $793,000 from customers on accounts receivable. January 24 Pay $580,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,700. January 31 Pay cash for salaries during January, $137,000. The following information is available on January 31, Year 1. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. [Hint: this is an LCNRV adjustment from Ch 6. Find the number of units left at the end of January. Compare the cost of the units left to the NRV (estimated selling price) of the units left. If NRV is less than cost, record an adjusting entry for the difference. If NRV is greater than cost, no adjusting entry is necessary.] b. The company estimates future uncollectible accounts. The company determines $5,800 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. [Hint: Make an aging schedule using the ending balance in Accounts Receivable (from the general ledger) like we did on p. 60 of the Ch 5 notes to determine the total estimated uncollectible accounts. Record an adjusting entry for the difference between the 1) total estimated uncollectible accounts and 2) current balance in the Allowance account (from 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 $14,100. Require... General General Journal Ledger Balance Statem... Trial Income Balance Sheet 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 closing entry for expenses. Note: Enter debits before credits. 14 15 16 > Date Jan 31 Account Title Retained Earnings Cost of Goods Sold Debit Credit Salaries Expense Bad Debt Expense Interest Expense Income Tax Expense Record entry View general journal Clear entry