Required information Exercise 5-22A Complete the accounting cycle using receivable transactions (L05-1,5-2,5-4,5-5,5-7) (GL) The following information applies to the questions displayed below.) The general ledger of Pop's Fireworks includes the following account balances in 2021: Credit Debit $ 24,400 49,500 $ 5,400 11,500 42,000 101,000 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (88, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Service Revenue Salaries Expense Utilities Expense Supplies Expense Totals 15,500 170,000 31,500 128,000 72,500 29,000 20,500 $350,400 $350,400 June In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: 3 Provide additional services on account for $23,000. All services on account include terms 2/10, n/30. 8 Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $13,000. November 15 Write off customer accounts of $3,100 as uncollectible. June Exercise 5-22A Part 4 Exercise 5-22A Part 4 4. Prepare an income statement for the period ended December 31, 2021. (Amounts to be deducted should be indicated with minus sign.) POP'S FIREWORKS Income Statement For the year ended December 31, 2021 Revenues: Net revenues Expenses: Total Expenses Net income Exercise 5-22A Part 5 5. Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) POP'S FIREWORKS Balance Sheet December 31, 2021 Assets Liabilities Total Current Assets Total Current Liabilities Stockholder's Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets er 5 Exercises Saved 7 Exercise 5-22A Part 6 of 7 6. Record closing entries. (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 closure of revenue accounts. ces Note: Enter debits before credits. Date General Journal Debit Credit Jan 21, 2021 Record entry Clear entry View general Journal In addition, the following transactions occurred during 2021 and are not yet reflected in the account bal June 3 Provide additional services on account for $23,000. All services on account inc n/30. June 8 Receive cash from customers within 10 days of the services being provided on acc customers were originally charged $13,000. November 15 Write off customer accounts of $3,100 as uncollectible. Exercise 5-22A Part 7 7. Analyze the following information: a. By how much does the year-end estimate of future uncollectible accounts reduce net income in 2021? b. What is the ending balance of Allowance for Uncollectible Accounts? c. What amount of cash is expected to be collected from accounts receivable? es a. b. Bad Debt Expense Ending Balance of Allowance for Uncollectible Accounts Amount expected to be collected C
