Please calculate the allowance for uncollectible accounts (and show work).

ADJUSTING ENTRIES

Exercise 5-21 Complete the accounting cycle using receivable transactions (L05-1, 5-4,5-5, 5-7, 5-8) (The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Credit Debit $ 25,300 14,300 $ 2,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (6%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 3,200 27,000 77,700 9,200 103,000 33, 100 $147,500 $147,500 During January 2021, the following transactions occur: January 2 Provide services to customers for cash, $42,100. January 6 Provide services to customers on account, $79,400. January 15 Write off accounts receivable as uncollectible, $1,800. January 20 Pay cash for salaries, $32, 100. January 22 Receive cash on accounts receivable, $77,000. January 25 Pay cash on accounts payable, $6,200. January 30 Pay cash for utilities during January, $14,400. 5. Prepare a classified balance sheet as of January 31, 2021. (Deductible amount should be indicated with by a minus sign.) Answer is complete but not entirely correct. 3D Family Fireworks Balance Sheet January 31, 2021 Liabilities $ Assets Current Assets: Cash Accounts Receivable Supplies Interest Receivable Allowance for Uncollectible Accounts Current Liabilities: Accounts Payable Salaries Payable $ 3,000 34,200 >>>> 91,700 14,900 600 135 1,600 Total Current Liabilities 37,200 108,935 37,200 Total Current Assets Long-term assets: Notes Receivable Land Total Liabilities Stockholders' Equity Common Stock Retained Earnings 27,000 77,700 103,000 70,235 173,235 Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets $ 213,635 $ 210,435 a. The company estimates future uncollectible accounts. The company determines $5,700 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.) b. Supplies at the end of January total $600. 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 $34,200. 2. Record adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Answer is complete and correct. No Date Debit Credit 1 January 31 General Journal Bad Debt Expense Allowance for Uncollectible Accounts 1,200 1,200 2 January 31 2,600 Supplies Expense Supplies 2,600 3 January 31 Interest Receivable 135 OO Interest Revenue 135 4 January 31 34,200 Salaries Expense Salaries Payable 34,200