Required information Exercise 6-21 (Algo) Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 6-6, 6- 7) On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Debit Credit $24,900 Accounts Receivable 44,000 Allowance for Uncollectible Accounts $3,300 Inventory 45,000 Land 84,100 Accounts Payable 27,700 Notes Payable (8%, due in 3 years) 45,000 Common Stock 71,000 Retained Earnings 51,000 $198,000 $198,000 Totals The $45,000 beginning balance of inventory consists of 450 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,350 units for $145,800 on account ($108 each). January 8 Purchase 1,450 units for $163,850 on account ($113 each). January 12 Purchase 1,550 units for $182,900 on account ($118 each). January 15 Return 175 of the units purchased on January 12 because of defects. January 19 Sell 4,500 units on account for $675,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $661,000 from customers on accounts receivable. January 24 Pay $440,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,400. January 31 Pay cash for salaries during January, $134,000. The following information is available on January 31, 2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,255 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $13,800. Exercise 6-21 (Algo) Part 6 6. Record closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the entry to close the revenue accounts. Note: Enter debits before credits. Date January 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal >