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 $ 23,300 Accounts Receivable 40,000 Allowance for Uncollectible Accounts $ 4,500 Inventory 37,000 Land 72,100 Accounts Payable 28,900 Notes Payable (64, due in 3 years) 37,000 Common Stock 63,000 Retained Earnings 39,000 Totalo $172,400 $172,400 The $37000 beginning balance of Inventory consists of 370 units, each costing $100. During Januar 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,600 units for $168,000 on account ($105 each). January 8 Purchase 1,700 units for $187,000 on account ($110 each). January 12 Purchase 1,800 units for $207,000 on account ($115 each) January 15 Return 135 of the unite purchased on January 12 because of defecto. January 19 Bell 5,200 units on account for $780,000. The cost of the units sold in determined using a TITO perpetual inventory system. January 22 Receive $753,000 from customers on accounts receivable. January 24 pay $520,000 to Inventory suppliers on accounts payable. January 27 Write oft accounts receivable as uncollectible, 63,200. January 31 Pay cash for salaries during January, $121,000. The following information is available on January 31, 2021 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 uncollectible accounts. The company determines $4,700 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) 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 $13,000. Exercise 6-21 Part 2 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 uncollectible accounts. The company determines $4,700 of accounts receivable on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts recelvable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balonce calculated in 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 $13,000 2. Record adjusting entries on January 31 for the above transactions (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 Required information View transaction list Journal entry worksheet 1 2. 3 4 > At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. Record the adjustment for net realizable value. Note: Enter debits before credits. General Journal Debit Credit Date January 31 Record entry Clear entry View general Journal Exercise 6-21 Part 3 eBook ASK 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. At the end of January, $4700 of accounts receivable are past due, and the company estimates that 35% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. 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 $13,000. 3. Prepare an adjusted trial balance as of January 31, 2021. Print ferences BIG BLAST FIREWORKS Adjusted Trial Balance January 31, 2021 Debit Accounts Credit wwwww Required information 3. Prepare an adjusted trial balance as of January 31, 2021. 5 BIG BLAST FIREWORKS Adjusted Trial Balance January 31, 2021 Debit Accounts Credit K ces Totals 5