Pool Required Information Exercise 6-21 Complete the accounting cycle using Inventory transactions (L06-2, 6-3, 6-5, 6-6, 6-7) The following information applies to the questions displayed below) On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances Accounts Debit Credit Cash $ 25,789 Accounts Receivable 46,eee Allowance for uncollectible Accounts $4,100 Inventory 49,000 Land 90,100 Accounts Payable 25,700 Notes Payable (6%, due in 3 years) 49, eee Common Stock 75,eee Retained Earnings 57, eee Totals $210, see $210, see The 549,000 beginning balance of inventory consists of 490 units, each costing S100. During January 2021. Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,750 units for $196,000 on account ($112 cach). January 3 Purchase 1, sse units for $216,450 on account ($117 each). January 12 Purchase 1,950 units for $237,900 on account ($122 each). January 15 Return 195 of the units purchased on January 12 because of defects. January 19 sell 5,700 units on account for 5855,000. The cost of the units sold is determined using a FIFO perpetual Inventory system. January 22 Receive 5837,000 fron customers on accounts receivable. January 24 Pay 5620,000 to inventory suppliers on accounts payable. January 27 write off accounts receivable as uncollectible, $2,see. January 31 Pay cash for salaries during January, $138,eee. The following information is available on January 31, 2021. 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 b. The company estimates future uncollecuble accounts. The company determines $5.900 of accounts receivable on January 31 are past due, and 35% 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) 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 $14.200